Equilibrium Is Defined as a Situation in Which

question 69

Multiple Choice

Equilibrium is defined as a situation in which

• A) neither buyers nor sellers want to change their behavior.
• B) no government regulations exist.
• C) demand curves are perfectly horizontal.
• D) suppliers will supply any amount that buyers wish to buy.

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Definitions:

Cartels

Associations of independent businesses or countries that work together to control prices and limit competition within an industry or commodity market.

Colluders

Parties that engage in a secret agreement, often illegal, to limit open competition by deceiving, misleading, or defrauding others of their legal rights.

Cutthroat Competitors

Businesses or individuals that engage in aggressive competition, using tactics that may include undercutting prices or other practices considered harsh or unfair.

Industry

A sector of the economy that produces goods or services, often classified into primary, secondary, and tertiary sectors.