If the Price of a Good Is Equal to the Equilibrium

question 8

Multiple Choice

If the price of a good is equal to the equilibrium price,

• A) there is a shortage and the price will fall.
• B) the quantity demanded is equal to the quantity supplied and the price remains unchanged.
• C) there is a surplus and the price will rise.
• D) there is a shortage and the price will rise.
• E) there is a surplus and the price will fall.

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Definitions:

Affirmative Defense

A defense used in litigation where the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven that the defendant committed the alleged act.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract, without lawful excuse.

Forum Selection Clause

A contractual provision that determines the location and jurisdiction where disputes arising under the contract will be resolved.

Confession of Judgment

A legal agreement where a debtor agrees that a creditor may obtain a judgment against them without a trial.