Assume a Competitive Market Is in Equilibrium

question 113

Multiple Choice

Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity ________.

• A) rises; increases
• B) rises; does not change
• C) falls; does not change
• D) falls; increases
• E) falls; decreases

Describe the process and significance of segmentation in annelids and its impact on locomotion.

Recognize the relationship between structure and function in the anatomy of mollusks.

Understand the concept and importance of market definition.

Identify factors relevant and irrelevant to defining a market from a supply-side approach.

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Definitions:

Government Intervention

Actions taken by a government to influence or regulate the economy or specific industries, often to correct market failures or promote social welfare.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and other forms of involvement.

Market Efficiency

A condition in which all available information is fully reflected in asset prices, making it impossible to consistently achieve higher returns than the overall market.