Equilibrium in a market is achieved when?

Equilibrium in a market is established when the quantity demanded by consumers matches the quantity supplied by producers. This balance means there is no excess supply or shortage of goods, leading to stability in the market price. When these two quantities are equal, the market is considered to be in a state of equilibrium, meaning that the forces of supply and demand are in perfect harmony.

In this condition, sellers are able to sell all they produce, and consumers can purchase exactly what they want at that price, leading to optimal resource allocation. The equilibrium point also serves as a benchmark for analyzing market changes. If a shift in supply or demand occurs, it can lead to a new equilibrium, demonstrating the dynamic nature of markets.

The other options do not accurately describe market equilibrium. Simply stating that there is no change in the quantity supplied does not indicate that demand has also matched that supply, making it incomplete. An increase in price does not guarantee equilibrium; in fact, it can create a surplus if demand fails to rise correspondingly. Similarly, mentioning that prices are inelastic refers to how consumers react to price changes and does not directly address the relationship between quantity demanded and quantity supplied that defines equilibrium.