Answer:
D. It prevents shortages and surpluses by producing the right number of goods for the right price.
Explanation:
The equilibrium price is the price in which the quantity of products that the consumers are willing to buy is the same as the quantity that producers want to sell. At a different price these quantities are not the same: at a higher price, the quantity supplied is higher than the quantity demanded, so there will be a surplus. At a lower price, the quatity demanded is higher than the quantity supplied, so there will be a shortage.
