A Model Is Valid

question 61

Multiple Choice

A model is valid

• A)if it is based on human behavior.
• B)if it is new.
• C)if it has been around for many years.
• D)if it can explains some observations or events.
• E)only if it makes predictions perfectly.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Lettuce Crop

The cultivation and production of lettuce, a leafy green vegetable commonly used in salads and other dishes.

Economy Moves

The various shifts and changes in the economic activities and conditions within an economy over time.