Once a Surplus Is Accumulated,more People Can Engage in Trade

question 11

Multiple Choice

Once a surplus is accumulated,more people can engage in trade.Initially,the surplus goods of preindustrial economies are distributed through a system of______________,which is the direct exchange of goods or services considered of equal values by the traders.

• A)bargain
• B)vendor supply
• C)barter
• D)line feeds

---

Definitions:

Demand Function

A mathematical representation showing the relationship between product demand and various factors like price, income, and preferences.

Supply Function

A relation that shows the quantity of a good or service that producers are willing and able to sell at each possible price, holding all other factors constant.

Equilibrium Quantity

The quantity of a good or service at which supply equals demand, and the market is in balance, without any excess supply or shortage.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price.