A Competitive Market with Flexible Prices and Many Buyers and Sellers

question 176

Multiple Choice

A competitive market with flexible prices and many buyers and sellers will:

• A) tend to create surpluses.
• B) tend to create shortages.
• C) reach an equilibrium where the market clears.
• D) reach and equilibrium only if a government agency sets the price.

---

Definitions:

Casual Crowd

A temporary gathering of individuals drawn together by a specific event or interest without a clear organizational structure.

Psychosocial Theory

A framework that explores the interaction between psychological developments and social environments across an individual's lifespan.

Emergent Norm Theory

A theory in sociology suggesting that norms and behaviors in crowds and social groups emerge spontaneously and are negotiated among members, rather than being inherent or fixed.

Convergence Theory

A concept in sociology that suggests differences among societies will decrease over time due to globalization, leading to similar social, political, and technological practices.