Which of the Following Statements Is TRUE

question 61

Multiple Choice

Which of the following statements is TRUE?

• A) It is easier to practice arbitrage for services than for goods.
• B) A monopolist prefers markets that are not segmented.
• C) The government requires that ethanol fuel be poisoned to prevent arbitrage.
• D) Arbitrage is the practice of buying products on credit.

---

Definitions:

Demand Equation

A mathematical representation of the relationship between the quantity of a good or service demanded and various factors affecting it, typically including price and income.

New Equilibrium Price

The price at which the market demand equals the market supply after a shift in supply or demand has occurred, creating a new point of balance.

Demand Equation

A mathematical formula that represents the relationship between the quantity of a good or service demanded and various factors affecting it, such as price and income.

Equilibrium Quantity

The quantity of goods supplied that is exactly equal to the quantity of goods demanded at the market price.