Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:

Equilibrium is a situation of ______.

Options:

Demand

Supply

Production

Rest

Correct Answer:

Rest

Explanation:

The correct answer is option 4: rest

  • Equilibrium is a situation where market forces of demand and supply are balanced, meaning there is no tendency for change in price or quantity.
  • It represents a state of rest, where neither buyers nor sellers have an incentive to change their behavior.
  • While demand, supply, and production are important factors in determining equilibrium, they do not define the concept itself.