When a Market Is in Equilibrium

question 174

Multiple Choice

When a market is in equilibrium

• A) there is no automatic tendency for either the supply curve or the demand curve to shift.
• B) there is a shortage at the existing price.
• C) there might be a surplus at the existing price.
• D) None of the above answers are correct.

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Definitions:

Internalization

The process of incorporating the beliefs, attitudes, or values of others into one's own belief system.

Moral Standards

Rules or principles governing what is considered right or wrong behavior.

Superego

In Sigmund Freud’s theory, the internalization of the moral standards of society inculcated by the child’s parents.

Reality Principles

The ability of the mind to assess the external world and act upon it rather than based on internal desires.