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Agriculture Economics QUESTION #11895
Question 1
Market equilibrium occurs where:
  • Quantity supplied exceeds quantity demanded
  • Quantity demanded equals quantity supplied at the prevailing price, $Q_d = Q_s$✔️
  • Price equals average cost
  • Total revenue is maximized
Correct Answer Explanation
Equilibrium is the price-quantity point at which $Q_d = Q_s$: the quantities buyers wish to purchase and sellers wish to offer are exactly equal.