Why Does Equilibrium in the Market for a Traded Good

question 53

Multiple Choice

Why does equilibrium in the market for a traded good not occur where that country's quantity demanded equals quantity supplied?

• A)Because equilibrium occurs where demand equals supply.
• B)Because markets are never in equilibrium.
• C)Because some of the good is imported or exported.
• D)Because there are several demand curves, and the market can't choose between them.
• E)All of the above are correct.

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Definitions:

Stimulus

Any object or event that evokes a sensory or behavioral response in an organism.

Stroop Test

A psychological test that demonstrates the conflict between cognitive processes by requiring individuals to name the color of a word rather than the word itself.

Duplex Mind

Describes the concept that the human mind has two different processing systems: an automatic, unconscious system and a deliberate, conscious system.

Human Brain

The central organ of the human nervous system, responsible for processing sensory information, regulating bodily functions, and enabling thoughts, emotions, and behaviors.