Those Things Held Unchanged When an Equilibrium Price Is Established

question 58

Multiple Choice

Those things held unchanged when an equilibrium price is established:

• A) are called demand and supply shifters if a change in one (or more) of them would change demand or supply.
• B) include only supply shifters.
• C) seldom change, and therefore prices and quantity in most markets are remarkably stable.
• D) never change, by definition.

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Definitions:

Transaction Costs

The expenses incurred when buying or selling goods or services, beyond the price of the goods.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.

Voluntary Exchange

A transaction where two parties trade goods or services by mutual agreement without coercion.

Transaction Costs

Expenses incurred during the buying or selling process, not limited to the price of the good, like fees, taxes, or other costs associated with the transaction.