At an Equilibrium Price

question 96

Multiple Choice

At an equilibrium price,

• A)both producers and consumers are satisfied with the quantity traded.
• B)only consumers are satisfied with the amount they can buy.
• C)only producers are satisfied with the amount traded.
• D)neither consumers nor producers are satisfied with the quantity traded.
• E)the willingness to sell and the willingness to buy are left out of balance.

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Definitions:

Investment

Allocation of resources, such as time, money, or effort, in hope of future benefits or returns.

Future Value

The eventual worth of an asset or cash that matches the value of a predetermined present sum.

Compounding

The process where the value of an investment increases because the earnings on an investment, both capital and interest, earn interest as time passes.

Rate of Return

The uplift or shortfall in the value of an investment during a specific interval, portrayed as a percentage of the investment’s original pricing.