Market equilibrium occurs when:

A. the quantity demanded equals the quantity supplied.

B. opposing forces pull demand and supply apart.

C. demand and supply move in opposite direction.

D. demand and supply change so that are equal at all possible prices.

E. all markets become equal.

• The correct answer is A. the quantity demanded equals the quantity supplied.

The market equilibrium is an expression used by economists to describe the situation in which the willingness of sellers and buyers to sell and purchase a good/service respectively is the same. At this point, the quantity that sellers want to sell at a given price (quantity supplied) is equal to the quantity that buyers want to buy at the same given price (quantity demanded). This can also be graphically found in the intersection of the supply and demand curves.

Note that all other options do not match with the description of the market equilibrium since they are describing the shifts of demand and supply. Therefore, options B., C., and D. are incorrect.