A Default Occurs When a Debtor Fails to Pay a Creditor

question 69

True/False

A default occurs when a debtor fails to pay a creditor as promised.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a certain price over a defined period.

Equilibrium Price

The rate at which supply and demand for a specific good or service are equal, creating a stable market condition.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the amount producers are willing to supply equals the amount consumers are willing to buy.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in a stable market condition.