When consumer demand for a product is met by the available supply, the market has reached:

• A. Producer surplus
• B. Price ceiling
• C. Excess demand
• D. Market equilibrium

Answer: (D)

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 at a certain price.
2. Recall that producer surplus is the difference between what producers are willing to accept and what they actually receive, which is different from equilibrium itself.
3. Recognize that a price ceiling is a government-imposed limit on how high a price can be charged, which can prevent the market from reaching equilibrium.
4. Identify that excess demand happens when the quantity demanded exceeds the quantity supplied, causing shortages, which means the market is not in equilibrium.
5. Conclude that when consumer demand is exactly met by available supply, the market is in equilibrium, meaning there is no shortage or surplus at the equilibrium price.