When a Market Is in Equilibrium

question 46

Multiple Choice

When a market is in equilibrium

• A) everyone has all they want of the commodity in question.
• B) there is no shortage and no surplus at the equilibrium price.
• C) the number of buyers is exactly equal to the number of sellers.
• D) the supply curve has the same slope as the demand curve.

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Definitions:

Middle-Income DVCs

Developing countries that have achieved a certain level of GDP per capita, falling between low-income and high-income thresholds, if DVCs is taken to mean Developing Countries.

Farm Labor

The workforce engaged in agricultural activities, including planting, cultivating, and harvesting crops, as well as raising livestock.

Demographic Transition

The massive decline in birth rates that occurs once a developing country achieves higher standards of living because the perceived marginal cost of additional children begins to exceed the perceived marginal benefit.

Population Growth

The increase in the number of individuals in a population over a specific period.