When a Market Is in Equilibrium

question 31

Multiple Choice

When a market is in equilibrium,

• A) everyone has all they want of the commodity in question.
• B) the supply curve has the same slope as the demand curve.
• C) there is no shortage and no surplus at the equilibrium price.
• D) the number of buyers is exactly equal to the number of sellers.

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Definitions:

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product.

Market Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that all consumers in a market are willing to purchase at each price level.

Price Elasticity

The degree to which the demand or supply of a product or service changes in response to a change in price, indicating the sensitivity of consumers or producers to price variations.

Total Expenditure

The aggregate amount spent by consumers on a particular good or service over a specified time period.