If a Market Is in Disequilibrium, Economists Would Predict That

question 139

Multiple Choice

If a market is in disequilibrium, economists would predict that the product's price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.

• A)remain constant; greater
• B)fall; less
• C)fall; greater
• D)rise; less

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Definitions:

Peer Group

A set of companies or individuals that share similar characteristics or interests, often used as a benchmark for performance comparison.

Return on Assets

is a financial ratio that measures how profitably a company can utilize its assets to generate earnings.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profitability that excludes interest and income tax expenses.

Net Income

The total earnings of a company after deducting all expenses from its total revenue, often referred to as the bottom line.