When Quantity Supplied Equals Quantity Demanded, There Is

question 36

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.

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Definitions:

Elastic Demand

A situation where the demand for a product or service significantly changes in response to price changes.

Close Substitutes

Products or services that can serve the same purpose or function, making them easily replaceable with one another in consumption or use.

Pollution Laws

Legislation that sets limits on the emission of pollutants into the environment, aiming to protect air and water quality.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can influence the market price.