Figure 12.1 -Which of the Graphs in Figure 12.1 Is Consistent with 12.1

question 12

Multiple Choice

Figure 12.1

-Which of the graphs in Figure 12.1 is consistent with a short-run equilibrium model where prices are variable?

• A) A
• B) B
• C) C
• D) D
• E) None of these

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Definitions:

Market Economy

An economic system where the prices of goods and services are determined in a free price system, set by supply and demand.

Efficient

Pertaining to a system or process that operates in a way that maximizes output with minimal waste, effort, or expense.

Resources

Assets, materials, and inputs needed for the production of goods and services, including natural resources, human resources, and capital.

Society Wants

The collective desires and needs of a society or community.