When Quantity Supplied Equals Quantity Demanded, There Is: ​

question 372

Multiple Choice

When quantity supplied equals quantity demanded, there is: ​

• A) ​disequilibrium.
• B) ​excess quantity supplied.
• C) ​ a market-clearing price (equilibrium price).
• D) ​excess quantity demanded.
• E) ​ a shortage.

---

Definitions:

Expected Return

The weighted average of all possible returns for an investment, with each return being weighted by its probability of occurrence.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Opportunity Sets

The range of possible investment opportunities available to an investor, given their resources and risk tolerance.

Risk-free Rate of Return

The theoretical rate of return of an investment with zero risk, typically represented by government bonds.