When a Market Is in Equilibrium, _____

question 13

Multiple Choice

When a market is in equilibrium, _____.

• A) the quantity supplied is equal to the quantity demanded
• B) the number of sellers is equal to the number of buyers
• C) buyers' willingness to demand is high
• D) the seller faces high production costs

Distinguish between short-run and long-run periods in economics and understand the implications for resource variability.

Evaluate the impact of changing inputs on total, average, and marginal products.

Identify and analyze fixed and variable costs in short-run production.

Calculate and interpret total, average, and marginal costs based on different inputs and outputs.

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture.

Shareholders

Individuals or entities that own shares of stock in a corporation, giving them rights to dividends and a stake in the company's ownership.

Preferred Shares

Preferred shares represent a class of ownership in a corporation with a fixed dividend and priority over common shares in asset liquidation.

Cost of Equity

The return that investors require for investing in a company's equity, representing the compensation for taking on equity risk.