In a Competitive Market the Equilibrium Price and Quantity Occur

question 230

Multiple Choice

In a competitive market the equilibrium price and quantity occur where:

• A)the downward sloping demand curve intersects the upward sloping supply curve.
• B)the upward sloping demand curve intersects the downward sloping supply curve.
• C)consumers and suppliers bargain to a mutually acceptable price.
• D)quantity demanded exceeds quantity supplied or vice versa.

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Definitions:

Amortized Mortgage Loan

An amortized mortgage loan is a type of loan where the principal and interest are paid down over the loan term through fixed monthly payments, leading to full repayment of the loan at the end of the term.

Nominal Annual Rate

The nominal annual rate refers to the annual interest rate stated on a loan or investment, not accounting for compounding within that year or inflation.

Payment Of Interest

The act of paying interest on borrowed capital, such as loans or bonds, as per the agreed terms and schedule.

Equal Installments

A method of loan repayment where the borrower pays the same amount periodically over the duration of the loan.