If the Current Price of a Good Is the Same

question 137

Multiple Choice

If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then:

• A) the market is in equilibrium.
• B) excess supply exists.
• C) price will rise.
• D) price will fall.

---

Definitions:

Yields

The earnings generated and realized on an investment over a particular period, expressed as a percentage of the investment's cost.

Economy

The economy represents the collective system of production, distribution, and consumption of goods and services among individuals, businesses, and governments within a specific region or country.

Bond Ratings

These are assessments provided by credit rating agencies on the creditworthiness of bond issuers, indicating the risk level of bonds defaulting.

Moody's Baa

Moody's Baa rating denotes bonds that are considered medium-grade, subject to moderate credit risk, and as such, investors should investigate further.