When Equilibrium Is Present, If Market Conditions Do Not Change

question 156

Multiple Choice

When equilibrium is present, if market conditions do not change,

• A) the current price will tend to rise in the future, and the current quantity will tend to fall.
• B) the current price will tend to fall in the future, and the current quantity will tend to rise.
• C) the current price and quantity will tend to persist in the future.
• D) the current price will tend to persist in the future, but the current quantity will tend to rise.

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Definitions:

Direct Costs

Expenses that can be directly traced to the production of a specific good or service, such as materials and labor.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, measuring the firm's overall financial performance.

Entrepreneurial Alertness

An entrepreneur's ability to notice and take advantage of new business opportunities not seen by others.

Barriers Entry

Obstacles companies must overcome to enter a particular market, which may include high startup costs, regulation, or strong competition.