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.