The Equilibrium Price Is the Price at Which the Quantity

question 156

Multiple Choice

The equilibrium price is the price at which the quantity

• A) sold equals the quantity bought.
• B) demanded equals the quantity supplied.
• C) demanded equals the quantity sold.
• D) supplied equals the quantity bought.

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Definitions:

Signature Liability

Liability attributed because of a party’s signature on an instrument.

Consideration Requirement

A legal principle that an agreement must involve a bargain or exchange of value between the parties to be enforceable.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for value, thus having certain protections against defenses and claims that could be raised by prior parties.

Shelter Principle

A legal concept that allows a person who receives goods in good faith without knowledge of a defect in the title to sell them with a clear title.