Questions: In microeconomics, what occurs when equilibrium is reached? Prices decline. Prices increase. Prices are set. Prices fluctuate.

The answer is the third one: Prices are set.

Explanation:

• When equilibrium is reached in microeconomics, it means that the quantity of goods supplied equals the quantity of goods demanded. At this point, the market price stabilizes, and there is no inherent pressure for it to change unless there is a shift in supply or demand.
• Prices decline: This would occur if there is an excess supply (surplus) in the market, not at equilibrium.
• Prices increase: This would occur if there is an excess demand (shortage) in the market, not at equilibrium.
• Prices fluctuate: This would happen when the market is not in equilibrium and there are ongoing adjustments in supply and demand.

Therefore, at equilibrium, prices are set at a level where the quantity supplied equals the quantity demanded.