Why Does Equilibrium in the Market for a Traded Good

question 53

Multiple Choice

Why does equilibrium in the market for a traded good not occur where that country's quantity demanded equals quantity supplied?

• A)Because equilibrium occurs where demand equals supply.
• B)Because markets are never in equilibrium.
• C)Because some of the good is imported or exported.
• D)Because there are several demand curves, and the market can't choose between them.
• E)All of the above are correct.

---

Definitions:

Prescriptive Premise

A statement of value contained within an argument's premise.

Ethical Subjectivism

The philosophical view that moral values and judgments are based on personal feelings or opinions rather than objective facts.

Moral Truth

A concept referring to the idea that there are universal ethical standards that apply across cultures and situations, guiding what is right and wrong.

Categorical Imperative

Kant’s fundamental moral principle that helps to determine what our duty is.