When a Market Is in Equilibrium

question 70

Multiple Choice

When a market is in equilibrium,

• A) quantity demanded equals quantity supplied
• B) quantity demanded exceeds quantity supplied
• C) the demand curve is identical to the supply curve
• D) the economy must be at a point along the production possibilities frontier
• E) the law of demand is equivalent to the law of supply

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Definitions:

Investment

Allocating financial resources with the goal of achieving returns or profits.

Compounded Monthly

The process where the interest earned on an investment is calculated monthly and added to the principal sum, resulting in interest on interest.

Deposits

Money placed into a bank account or with a financial institution for safekeeping or to earn interest.

Investment

The distribution of financial resources in anticipation of earning revenue or gains.