A Liquid Asset Is

question 9

Multiple Choice

A liquid asset is

• A)an asset that can easily and quickly be sold to raise cash.
• B)a share of an ocean resort.
• C)difficult to resell.
• D)always sold in an over-the-counter market.

---

Definitions:

Demand Curve

A chart that illustrates how the price of a product correlates with the amount consumers are ready to buy at different price levels.

Perfectly Competitive

A market structure characterized by many buyers and sellers, all of whom are producing identical products, leading to no single participant having control over the price.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, and freedom of entry and exit, leading to price taking behavior by all firms.

Long-run Equilibrium

Describes a state in a market where supply equals demand, with sufficient time for all factors of production to adjust and no external pressures.