When Prices Are Free to Adjust Over Time, in the Long

question 190

Multiple Choice

When prices are free to adjust over time, in the long run, the market price of a good tends to

• A) rise above the equilibrium price in the long run.
• B) equal the equilibrium price.
• C) fall below the equilibrium price in the long run.
• D) have no specific relationship to the equilibrium price.

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