The Equilibrium Point Represents the Only Price-Quantity Combination in a Market

question 22

Multiple Choice

The equilibrium point represents the only price-quantity combination in a market that:

• A)causes both buyers and sellers to agree to a price increase.
• B)causes both buyers and sellers to agree to a price decrease.
• C)exactly matches the independent plans of buyers and sellers.
• D)allows buyers to purchase what they want.
• E)allows sellers to earn a positive profit.

---

Definitions:

SWOT Analysis

A strategic planning tool used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats, to gauge internal and external factors affecting its objectives.

External Analysis

The evaluation of factors outside a business that can impact its performance, such as economic trends, competitive landscape, and regulatory environments.

Internal Analysis

The process of examining an organization's strengths, weaknesses, internal resources, and capabilities to improve performance or strategic planning.

Bargaining Power of Buyers

The ability of buyers to negotiate lower prices or better terms with sellers, influenced by factors such as market competition and buyer concentration.