A Principle States That When the Supply and Demand Curves

question 138

Multiple Choice

A principle states that when the supply and demand curves cross in a competitive market, Pareto efficiency is achieved. This principle is called

• A)the first theorem of cost minimization.
• B)the first theorem of utility maximization.
• C)equilibrium.
• D)the first theorem of welfare economics.
• E)price equals marginal cost.

---

Definitions:

Civil Code System

A legal system based on comprehensive written codes, as opposed to case law, providing all laws that can be applied to a specific area.

Canada

A country in North America known for its vast landscapes, multicultural society, and parliamentary democracy.

British North America Act

A foundational statute passed in 1867, that united three colonies into the single country of Canada, establishing its federal structure and constitution.

Constitution

The fundamental principles or established precedents which constitute the legal basis of a state, governing the structure and operation of the government.