When supply and demand meet at the equilibrium point, prices in the market will:

• A. become unpredictable
• B. fall to zero
• C. remain stable unless there is a shift in supply or demand
• D. continue to rise indefinitely

Answer: (C)

Verified step by step guidance

1. Understand the concept of market equilibrium: it is the point where the quantity demanded by consumers equals the quantity supplied by producers.
2. At equilibrium, the market price is such that there is no excess supply or excess demand, meaning the market 'clears' efficiently.
3. Recognize that if the price were to rise above equilibrium, excess supply would occur, pushing the price back down; if the price were to fall below equilibrium, excess demand would push the price back up.
4. Therefore, prices tend to remain stable at the equilibrium point unless there is a shift in either the supply curve or the demand curve, which would change the equilibrium price and quantity.
5. Conclude that the correct behavior of prices at equilibrium is to remain stable unless external factors cause shifts in supply or demand.