What Is the Likely Effect of the Equilibrium of Supply

question 26

Multiple Choice

What is the likely effect of the equilibrium of supply and demand in a market

• A)It maximizes the prices at which producers are willing to sell.
• B)It minimizes the prices that consumers are willing to pay.
• C)It maximizes market benefits from government intervention.
• D)It maximizes total surplus in a competitive market.

---

Definitions:

Fundamental Analysts

Financial experts who evaluate investments based on fundamental factors such as earnings, dividends, and the financial health of companies.

Profitability

The financial metric that measures the degree to which a company or project generates profit compared to its revenues, costs, or investments.

Market Consensus Value

The average value or price of a security as agreed upon by market participants, often considered as the most probable price in the marketplace.

Required Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.