Which of the Following Is Likely to Be True for a Market

question 95

Multiple Choice

Which of the following is likely to be true for a market that is NOT in equilibrium?

• A) There are no shortages or surpluses in the market.
• B) The quantity demanded of the good equals the quantity supplied.
• C) Buyers benefit from trading in a market where the price is below the equilibrium price.
• D) Sellers are likely to adopt strategies like discounting.

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Definitions:

Marginal Social Benefit

An additional gain to society derived from consuming or producing another unit of a good or service.

Marginal Social Cost

An increased charge to the general public for the creation of one more unit of a product or service.

Pollution

The presence in or introduction into the environment of a substance or thing that has harmful or poisonous effects.

Marginal Social Benefit

The additional benefit society gains from consuming one more unit of a good or service.