JAMB - Economics (2024 - No. 54)

At the equilibrium price,
demand equates supply
price is equal to demand only
demand is less than supply
demand is greater than supply

Explanation

The equilibrium price is the price at which the quantity demanded by consumers equals the quantity supplied by producers in a market. It represents the point of balance between demand and supply.
At the equilibrium price, the quantity that consumers are willing to buy (demand) matches the quantity that producers are willing to sell (supply). There is no shortage or surplus in the market because the quantity demanded and the quantity supplied are in equilibrium.

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