What is the quantity demanded and supplied when the market is in equilibrium?

• A. Market structure
• B. Perfect competition
• C. Equilibrium quantity
• D. Monopoly

Answer: (C)

When a market is in equilibrium, the quantity demanded equals the quantity supplied, so the market clears. The amount traded at that point is called the equilibrium quantity. It’s found where the demand and supply curves intersect, meaning Qd = Qs = Q*. If the price were higher, a surplus would push prices down toward the equilibrium; if lower, a shortage would push prices up. So the equilibrium quantity is the specific amount that balances both sides of the market, not a description of market structure or competition type.