In a Market System, What Must Take Place for Quantity

question 101

Multiple Choice

In a market system, what must take place for quantity demanded to continually be equated with quantity supplied?

• A) Price controls must be applied by governments.
• B) Relative prices must be able to adjust to market clearing levels.
• C) Tastes and preferences of consumers must adjust to eliminate surpluses or shortages.
• D) Businesses must engage in involuntary, unprofitable exchanges to eliminate surpluses or shortages.

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Definitions:

Liberty

The quality or state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Abolishment of Slavery

The formal termination of the legal status of slavery, often achieved through legislative acts.

Founding Documents

Historic texts or writings that outline the foundational principles and laws of a nation or organization, such as the U.S. Constitution and Declaration of Independence.

Manifest Destiny

Phrase first used in 1845 to urge annexation of Texas; used thereafter to encourage American settlement of European colonial and Indian lands in the Great Plains and the West and, more generally, as a justification for American empire.