A Market Is in Equilibrium

question 79

Multiple Choice

A market is in equilibrium

• A)when the government imposes price controls.
• B)when the price is low.
• C)where the demand and supply curves intersect.
• D)when the price is high.
• E)when equilibrium price equals equilibrium quantity.

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used as an indicator of inflation.

Short-Run Aggregate Supply Curve

A graphical representation that shows the relationship between the total supply of goods and services produced by a country at various price levels in the short-run.

Actual Price Level

The current general level of prices for goods and services in an economy, which can be compared to past levels to assess inflation or deflation.

Expected Price Level

The anticipated average price of goods and services in an economy over a future period, which influences consumer and business decisions.