Which of the Following Statements Is an Example of the Equilibrium

question 39

Multiple Choice

Which of the following statements is an example of the equilibrium principle?

• A) If the price in a market is higher than the equilibrium price,excess supply will put pressure on the price to rise.
• B) If the price in a market is lower than the equilibrium price,excess demand will put pressure on the price to fall.
• C) If the price in a market is higher than the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales.
• D) If the price in a market is lower than the equilibrium price,consumers have an incentive to reduce the price in order to obtain the good.
• E) If the price in a market is equal to the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales.

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Definitions:

Procedural Fairness

A concept emphasizing the importance of fair and impartial processes in decision-making, leading to increased acceptability of decisions.

Interactional Fairness

The perceived fairness of the interpersonal treatment people receive when organizational procedures are implemented.

Distributive Fairness

Distributive fairness, also known as distributive justice, is the perceived fairness of the outcomes received, including the distribution of rewards or resources among members of a group or organization.

Shocks

Unexpected or sudden events that disrupt the current state of affairs, often leading to significant changes.