The Equilibrium Price Is Often Considered to Be "Just Right

question 2

Multiple Choice

The equilibrium price is often considered to be "just right" because:

• A) it equates the amount supplied with the amount demanded.
• B) it does not result in a shortage.
• C) it does not result in a surplus.
• D) of all of the above.

---

Definitions:

Cost Price Approach

A pricing methodology where the selling price of a product is determined by adding a markup to its total cost of production or acquisition.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Invested Assets

Assets or capital that have been allocated or deployed with the expectation of earning a return or profit.

Operating Expenses

Expenses incurred in the regular operation of a business, such as rent, salaries, utilities, and office supplies, but excluding cost of goods sold.