The correct answer is: C. the balancing of the forces of demand and supply for the commodity.
Market equilibrium is the point at which the quantity demanded of a good or service is equal to the quantity supplied. It is the point at which the market forces of demand and supply are in balance.
The demand for a good or service is the amount of that good or service that consumers are willing and able to purchase at various prices. The supply of a good or service is the amount of that good or service that producers are willing and able to sell at various prices.
The market equilibrium price is the price at which the quantity demanded of a good or service is equal to the quantity supplied. The market equilibrium quantity is the quantity of a good or service that is bought and sold at the market equilibrium price.
The market equilibrium is important because it is the point at which the market is most efficient. At the market equilibrium, there is no shortage or surplus of the good or service. The market equilibrium is also the point at which the total benefit to consumers and producers is maximized.
The market equilibrium is determined by the forces of demand and supply. The demand curve shows the relationship between the price of a good or service and the quantity demanded of that good or service. The supply curve shows the relationship between the price of a good or service and the quantity supplied of that good or service.
The market equilibrium price is the price at which the demand curve and the supply curve intersect. The market equilibrium quantity is the quantity of the good or service that is bought and sold at the market equilibrium price.
The market equilibrium can be affected by changes in demand, changes in supply, or changes in both demand and supply. Changes in demand can be caused by changes in consumer income, changes in consumer tastes, or changes in the prices of related goods or services. Changes in supply can be caused by changes in the cost of production, changes in the technology of production, or changes in the prices of inputs.
Changes in the market equilibrium can have a significant impact on the economy. For example, an increase in demand for a good or service will lead to an increase in the market equilibrium price and an increase in the market equilibrium quantity. This will lead to an increase in the profits of producers and an increase in the welfare of consumers.
On the other hand, a decrease in demand for a good or service will lead to a decrease in the market equilibrium price and a decrease in the market equilibrium quantity. This will lead to a decrease in the profits of producers and a decrease in the welfare of consumers.