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Question : The market equilibrium for a commodity is determined by:

Option 1: the market supply of the commodity.

Option 2: the balancing of the force of demand and supply for the commodity.

Option 3: the intervention of the government.

Option 4: market demand of the commodity.


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 9th Jan, 2024

Correct Answer: the balancing of the force of demand and supply for the commodity.


Solution : The correct option is the balancing of the force of demand and supply for the commodity .

The market reaches equilibrium at the intersection of the demand and supply curves, where the quantity demanded matches the quantity supplied. This is the point of market balance, where neither a surplus nor a shortage of the commodity exists. Any shifts in either the demand or supply curves will result in adjustments to the equilibrium price and quantity.

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