True or False: Market equilibrium occurs where supply equals demand.

Market equilibrium is defined as the point at which the quantity of goods supplied is exactly equal to the quantity of goods demanded. This concept applies universally across different market structures, not just in perfectly competitive markets. When supply equals demand, there is no surplus or shortage of goods, meaning the price is stable, and resources are allocated efficiently.

The statement is true and reflects a fundamental principle in economics—the balance between supply and demand determines market prices and the quantity of goods that are sold. In cases where the market is not in equilibrium, external factors such as government regulations or other market influences might temporarily affect the supply or demand, leading to price changes. However, the basic concept of equilibrium being the intersection of supply and demand holds true in a variety of contexts, refuting the idea that it only applies in specific scenarios or market structures.

Thus, the accurate understanding of market equilibrium aligns with the idea that it occurs where supply equals demand, confirming that the first statement is indeed true.