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Homework answers / question archive / When quantity supplied equals quantity demanded: A
When quantity supplied equals quantity demanded:
A. there is disequilibrium
B. the marked is cleared
C. there is the excess quantity demanded.
D. there is excess quantity supplied I'm stuck between C and D but I think it's D?
B. The market is cleared.
The market being cleared is the same as saying that the market is in equilibrium. When quantity demanded is equal to the quantity supplied, there will be no need to correct the market since neither surplus nor shortage exists. At this point, the market is said to be cleared precisely because it is in equilibrium.
