Market equilibrium
i. can never occur because there are always people who want a good but cannot afford it.
ii. occurs at the intersection of the supply and demand curves.
iii. is the point where the price equals the quantity.
A) ii and iii B) i only C) ii only D) i and ii E) iii only
C
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Which of the following categories of goods and services is included in the CPI?
a. food b. transportation c. housing d. All of these.
The law of supply says that
a. supply and income are inversely related b. supply follows demand c. quantity supplied equals quantity demanded d. price and quantity supplied are inversely related e. price and quantity supplied are directly related
If one were to rank the demand curve facing a firm from the least elastic to the most elastic, the ranking would be
a. monopoly, perfectly competitive, monopolistically competitive b. monopoly, monopolistically competitive, perfectly competitive c. perfectly competitive, monopoly, monopolistically competitive d. monopolistically competitive, monopoly, perfectly competitive e. perfectly competitive, monopolistically competitive, monopoly
The rate of inflation in the United States since 1960 has:
A. declined steadily and predictably from 14% to 1.3%. B. remained below 1.3% as a result of effective Federal Reserve monetary policy. C. increased steadily from 1.3% to 14% and then decreased steadily back to 1.3%. D. fluctuated between 1.3 and 14%, often catching many people by surprise.