A Market Comprised of a Downward-Sloping Demand Curve and an Upward-Sloping

question 70

Multiple Choice

A market comprised of a downward-sloping demand curve and an upward-sloping supply curve is said to be stable because

• A) price will never change.
• B) quantity will never change.
• C) demand will never change.
• D) supply will never change.
• E) at any price other than equilibrium,forces in the market move the price towards the equilibrium.

---

Definitions:

Public-sector Managers

Individuals responsible for directing, controlling, and overseeing the operations and budgets within government departments or public sector organizations.

Economically Efficient

A situation in which resources are allocated in a way that maximizes the net benefit to society, with no way to improve someone's condition without worsening another's.

Public Choice Theory

An economic theory that studies how public decisions and policies are made, considering individuals in the public sector make choices largely based on their own interests, similar to those in the private sector.

Private Sector

The part of the economy that is owned and operated by private individuals and companies, not controlled by the state, focusing on profit generation.