When a Market Is in Equilibrium and There Is No

question 198

Multiple Choice

When a market is in equilibrium and there is no outside intervention to change the equilibrium price:

• A)total surplus is minimized.
• B)inefficiency is maximized.
• C)no mutually beneficial trades are missed.
• D)some mutually beneficial trades may be missed.

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Definitions:

Farmers

Individuals engaged in agriculture, aiming at producing food and other crops, raising livestock, and managing farm operations.

Railroad Lines

These are networks of tracks along which trains travel, essential for the transportation of goods and passengers over land.

Unprofitably Low Rates

Pricing levels that are so low they do not generate enough revenue to cover costs, leading to financial losses.

Competitive Routes

Refers to transportation or shipping paths that various companies or countries vie to control or use due to their strategic importance or profitability.