In the context of market equilibrium, all retailers strive for supply to be _______ to demand.

• A. greater
• B. equal
• C. unrelated
• D. less

Answer: (B)

Verified step by step guidance

1. Understand the concept of market equilibrium, which occurs when the quantity supplied by sellers equals the quantity demanded by buyers.
2. Recall that in equilibrium, there is no excess supply (surplus) or excess demand (shortage) in the market.
3. Recognize that if supply were greater than demand, a surplus would occur, causing prices to fall.
4. Recognize that if supply were less than demand, a shortage would occur, causing prices to rise.
5. Therefore, in market equilibrium, retailers strive for supply to be equal to demand to maintain a stable market price.