Which of the following characteristics relate to equilibrium? a

Marketing Jan 09, 2021

Which of the following characteristics relate to equilibrium?

a. The sum of consumer surplus and producer surplus.

b. When a change in some economic factors related to demand causes a different quantity to be demanded at every price.

c. The combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to shift.

d. At the existing price, the quantity demanded exceeds the quantity supplied.

Expert Solution

c. The combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to shift .

It is because the point of equilibrium typically offers the pair of price and quantity, which gets stuck at the point from where no tendency of any fluctuation exists. It reflects points of zero surpluses and zero shortages.

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