Discuss How a Market Reaches Equilibrium

question 78

Essay

Discuss how a market reaches equilibrium. How is it expressed graphically?

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Definitions:

Altruism

Unselfish regard for the welfare of others.

Two-Factor Theory

The Schachter-Singer theory that to experience emotion one must (1) be physically aroused and (2) cognitively label the arousal.

Passionate Love

An intense emotional state characterized by romantic attraction, sexual desire, and a desire for closeness with the partner.

Mere Exposure Effect

A psychological phenomenon where individuals develop a preference for people, objects, or concepts merely because they are familiar with them.