Markets Tend Toward Equilibrium And, as a Result, Will Tend

question 152

Essay

Markets tend toward equilibrium and, as a result, will tend to eliminate shortages and surpluses. Why?

---

Definitions:

Season Tickets

Prepaid tickets allowing entry to a series of events, typically for sports or theatrical seasons, offering a discount over purchasing individually.

Magazine Subscriptions

Recurring payments made by the readers to receive periodic publications over a specific period of time.

Supplies Expense

The cost associated with the consumption of supplies used in the operation of a business.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.