In a Two Good Economy the Statement That the Equilibrium

question 19

Multiple Choice

In a two good economy the statement that the equilibrium price in one market occurs where supply equals demand implies that supply equals demand in the other market is referred to as:

• A)the law of demand.
• B)the first theorem of welfare economics.
• C)Walras' law.
• D)the second theorem of welfare economics.

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Definitions:

Glandular Tissue

Specialized tissue consisting of glands that produce and secrete substances needed for bodily functions, such as hormones or digestive enzymes.

Epithelial

Relating to the epithelium, a layer of cells covering the body surfaces, lining cavities and organs, and forming glands, with roles in protection, secretion, and absorption.

Semipermeable Membrane

A type of membrane that allows certain molecules or ions to pass through it by diffusion and often by facilitated diffusion.

Osmosis

The process of fluid passing through a semi-permeable membrane from a less concentrated solution to a more concentrated one, to equalize the concentrations on both sides of the membrane.