In microeconomics, a market is said to be in equilibrium under which of the following conditions regarding demand and supply at the current price?

Introduction / Context:
Market equilibrium is a central concept in microeconomics. It describes a situation in which the forces of demand and supply are in balance at a particular price and quantity combination. This question asks you to identify the correct condition that defines equilibrium in a competitive market. Having a clear understanding of equilibrium helps in analyzing how prices adjust and how shocks affect markets.

Given Data / Assumptions:

• We consider a standard competitive market for a single good.
• Demand represents how much consumers are willing and able to buy at various prices.
• Supply represents how much producers are willing and able to sell at those prices.
• We focus on the condition at the current market price.

Concept / Approach:
In equilibrium, the quantity demanded equals the quantity supplied at a specific price. This means there is no excess demand and no excess supply at that price, so there is no pressure for the price to change. Formally, equilibrium occurs where the demand curve and the supply curve intersect. The definition does not require equality at every possible price, only at the equilibrium price. It also does not mean that all buyers get what they want at any price; instead, it means that at the prevailing price, the market clears because planned purchases and sales are equal.

Step-by-Step Solution:
Step 1: Recall that market equilibrium is defined by quantity demanded equal to quantity supplied at the equilibrium price. Step 2: Examine option B, which states that the amount consumers wish to buy at the current price equals the amount producers wish to sell at that price. Step 3: Recognize that option B directly expresses equality of demand and supply at the current price, which matches the definition. Step 4: Examine option A, which refers to downward pressure on price due to excess supply; this describes a disequilibrium situation, not equilibrium. Step 5: Examine options C and D, which either speak about buying at any price or equality at every price, both of which misstate the precise equilibrium condition. Therefore, select option B.

Verification / Alternative check:
To verify, imagine a simple supply and demand graph. At the intersection point, the price is such that consumers want to buy exactly the number of units that producers plan to sell. If the price were above this level, quantity supplied would exceed quantity demanded, leading to downward pressure on price. If the price were below, quantity demanded would exceed quantity supplied, causing upward pressure. Only at the intersection is there no pressure for price to move, confirming that equality of planned demand and supply at the current price is the equilibrium condition.

Why Other Options Are Wrong:
Option A describes a situation with excess supply, where supply is greater than demand, which pushes price down and indicates that the market is not in equilibrium. Option C suggests that all buyers can find sellers at any price they offer, which is unrealistic and not a definition of equilibrium; prices adjust to balance demand and supply, and not all prices will clear the market. Option D incorrectly states that supply equals demand at every possible price level, which would imply perfectly elastic or perfectly inelastic curves and is not how equilibrium is defined. Hence, only option B correctly captures the idea of equality of demand and supply at the current price.

Common Pitfalls:
Students sometimes confuse the idea of equilibrium with fairness or with everyone getting exactly what they want. In reality, equilibrium simply means no incentive for price to change given current demand and supply. Another pitfall is thinking that equality holds across all prices, rather than only at the equilibrium price. To avoid confusion, remember the phrase at the current price, quantity demanded equals quantity supplied, and that any mismatch creates pressure for price to change until equilibrium is restored.

Final Answer:
A market is said to be in equilibrium when the amount consumers wish to buy at the current price equals the amount producers wish to sell at that price.