The point at which the supply curve and the demand curve intersect is called:
A. irrelevant, because real-world prices never reach this point.
B. equilibrium, because quantity supplied exceeds quantity demanded so there is a surplus.
C. equilibrium, because quantity demanded equals quantity supplied so there is no tendency for price to change.
D. equilibrium, because quantity demanded exceeds quantity supplied so there is a shortage.
Answer: C
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An effective price support ________ producers and ________ a deadweight loss
A) has no effect on; does not create B) benefits; creates C) harms; creates D) benefits; does not create E) harms; does not create
Because it takes time for workers to search for a job and for firms to search for new employees, there will always be some workers who are
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.
In the long run the monopolistic competitor
A. charges the same price but produces a greater output than the perfect competitor. B. charges a higher price but produces a smaller output than the perfect competitor. C. charges a higher price and produces a higher output than the perfect competitor. D. charges a lower price and produces a lower output than the perfect competitor.
The study of the efficient allocation of the scarce means of production toward the satisfaction of human wants defines ______________.
Fill in the blank(s) with the appropriate word(s).