Question

In the apple example, why is ₹300 called the equilibrium price?

Options

• Because quantity demanded is more than quantity supplied at ₹300

• Because quantity demanded is less than quantity supplied at ₹300

• Because both demand and supply are zero at ₹300

• Because quantity demanded and quantity supplied are equal at ₹300

Answer 1

Because quantity demanded and quantity supplied are equal at ₹300

Explanation:

At ₹300, the quantity demanded and quantity supplied of apples are both 3000 kg, so this price clears the market and is called the equilibrium price.