Market Equilibrium Is Considered Efficient Because

question 131

Multiple Choice

Market equilibrium is considered efficient because

• A) quantity supplied equals quantity demanded.
• B) the price consumers pay equals the amount producers receive.
• C) it produces the largest possible total economic surplus.
• D) excess supply is zero.
• E) excess demand is zero.

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Definitions:

Maine

A U.S. state located in the northeastern part of the country, known for its scenic coastlines and maritime history.

Northwest Ordinance

A significant law passed by the United States Congress in 1787 that provided a method for admitting new states to the Union from the Northwest Territory.

Northwest Territory

A historical region encompassing the area near the Great Lakes and the upper Mississippi River that was organized under United States governance post the American Revolutionary War.