At market equilibrium, the equilibrium quantity is:

• A. the quantity at which demand exceeds supply
• B. the quantity where the market price is zero
• C. the quantity at which the quantity demanded equals the quantity supplied
• D. the quantity at which supply exceeds demand

Answer: (C)

Verified step by step guidance

1. Understand the concept of market equilibrium: it occurs when the quantity demanded by consumers equals the quantity supplied by producers.
2. Recall that at equilibrium, there is no shortage or surplus in the market, meaning demand and supply are perfectly balanced.
3. Identify that the equilibrium quantity is the specific quantity where the demand curve intersects the supply curve.
4. Recognize that if demand exceeds supply, there is a shortage, and if supply exceeds demand, there is a surplus, so neither represents equilibrium.
5. Conclude that the equilibrium quantity is the quantity at which the quantity demanded equals the quantity supplied.