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The market equilibrium for a commodity is determined by:
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- The market supply of the commodity.
- The balancing of the forces of demand and supply for the commodity
- The intervention of the Government.
- The market demand of the commodity.
- The market supply of the commodity.
Correct Option: B
Market Equilibrium is determined when the quantity demanded of a commodity becomes equal to the quantity supplied. The price determined corresponding to market equilibrium is known as equilibrium price and the corresponding quantity is known as equilibrium quantity.
