Price Tends to Be in Equilibrium Where Supply and Demand

question 119

Multiple Choice

Price tends to be in equilibrium where supply and demand intersect because when quantity supplied:

• A) equals quantity demanded, prices don't change.
• B) exceeds quantity demanded, prices have a tendency to rise.
• C) is less than quantity demanded, prices tend to fall.
• D) equals quantity demanded, prices will fall.

Understand the effects of governmental fiscal policy on the economy.

Comprehend the impact of currency valuation changes on exports and imports.

Identify the challenges in implementing fiscal policy.

Recognize how monetary policy affects economic investment.

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Definitions:

Situation Analysis

An assessment process that identifies an organization's internal strengths and weaknesses, along with external opportunities and threats in its environment.

SWOT Analysis

A strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Market Summary

A description of the current state of the market.

BCG Matrix

A strategic business tool that classifies business units or products into four categories (Question Marks, Stars, Cash Cows, Dogs) based on market growth and market share.