Economists emphasize the importance of equilibrium in markets because
a. trading in markets can only occur at the equilibrium price and quantity
b. the behavior of buyers and sellers will automatically guide the market toward the equilibrium price and quantity
c. all buyers and sellers are better off at the equilibrium point than any other price and quantity combination
d. it represents a compromise between sellers hoping for low prices and buyers searching for high prices
e. it is the only price-quantity combination that guarantees that the poorest members of society can purchase the good or service
B
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Which of the following statements about inputs is correct?
a. A forest is an example of a natural resource; it is also an example of a renewable resource. b. There is no distinction between human capital and technological knowledge. c. Human capital is a non-produced factor of production. d. Physical capital is a non-produced factor of production.
If the demand for alarm clocks decreases, the effect on the alarm clock job market will be to
A. Increase the demand for labor and increase equilibrium wages. B. Decrease the demand for labor and reduce equilibrium wages. C. Reduce the supply of labor and increase equilibrium wages. D. Have no impact on equilibrium wages.
You purchased a December corn futures contract on July 1. A month later you decide you would like to take delivery. You do which of the following?
A. You can call up your broker and get almost immediate delivery. B. You will get delivery only if by chance the buyer you bought from decides to deliver. C. You must wait until December 1 and then you can demand delivery. D. None of the above.
Expectations are destabilizing if they are based on the belief that exchange rates eventually return to the values consistent with basic economic conditions.
Answer the following statement true (T) or false (F)