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      Question

      Equilibrium price is the price

      when:
      A supply is greater than demand Correct Answer Incorrect Answer
      B supply is less than demand Correct Answer Incorrect Answer
      C demand is very high Correct Answer Incorrect Answer
      D supply is equal to demand Correct Answer Incorrect Answer

      Solution

      In economic theory, equilibrium price is the price at which the quantity of goods supplied equals the quantity of goods demanded. At this price, there is neither surplus nor shortage in the market, and the forces of supply and demand are balanced. Therefore, the correct answer is (d) supply is equal to demand.

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