Equilibrium Exists When

question 96

Multiple Choice

Equilibrium exists when:

• A)output is distributed equitably.
• B)scarcity is eliminated.
• C)an individual would be better off taking a different action.
• D)no individual has an incentive to change his or her behavior.

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Definitions:

Supply Equation

An algebraic expression representing the relationship between the quantity supplied of a good and its price, along with other factors like the cost of inputs.

Ceiling Prices

Legally established maximum prices that can be charged for goods or services, usually set by government authorities.

Black Markets

Illicit trade environments where goods or services are exchanged illegally or outside the official regulatory frameworks.

Legal Market

A marketplace in which transactions are regulated by laws and monitored by the government to ensure fairness and compliance.