If Equilibrium Is Present in a Market

question 14

Multiple Choice

If equilibrium is present in a market:

• A) there is either a shortage or a surplus.
• B) the quantity demanded equals quantity supplied.
• C) the quantity demanded exceeds quantity supplied.
• D) the quantity supplied exceeds quantity demanded.

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Definitions:

The Enlightenment

A philosophical movement in the 17th and 18th centuries emphasizing reason, individualism, and skepticism of traditional doctrines.

Rational

Pertaining to the quality of being based on, or in accordance with, reason or logic.

Western Philosophy

A philosophical tradition originating in the Western world, broadly encompassing the philosophy of ancient Greece and Rome, medieval European philosophy, and modern Western thought.

Cognitive Dissonance

State of psychological tension produced by simultaneously having two opposing cognitions. People are motivated to reduce the tension, often by changing or rejecting one of the cognitions. Festinger proposed that we seek harmony in our attitudes, beliefs and behaviours and try to reduce tension from inconsistency among these elements.