Assertion (A): At the equilibrium price, there is neither excess demand nor excess supply.
Reason (R): At the equilibrium price, quantity demanded equals quantity supplied.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true, and R is why A holds: equal quantities leave nothing short and nothing over.

Concept: No excess at equilibrium
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsEquilibrium price and quantity

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Ten questions from Market Equilibrium & Price Controls, at your own pace.

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Ten questions from Market Equilibrium & Price Controls, at your own pace.

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Assertion (A): At the equilibrium price, there is neither excess demand nor excess supply.Reason (R): At the equilibrium price, quantity demanded equals quantity supplied.

Explanation

Assertion (A): At the equilibrium price, there is neither excess demand nor excess supply.
Reason (R): At the equilibrium price, quantity demanded equals quantity supplied.