In a Market System, What Must Take Place for Quantity

question 101

Multiple Choice

In a market system, what must take place for quantity demanded to continually be equated with quantity supplied?

• A) Price controls must be applied by governments.
• B) Relative prices must be able to adjust to market clearing levels.
• C) Tastes and preferences of consumers must adjust to eliminate surpluses or shortages.
• D) Businesses must engage in involuntary, unprofitable exchanges to eliminate surpluses or shortages.

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Definitions:

Proximal Convoluted Tubule

A segment of the nephron in the kidney where a major portion of the reabsorption of water, ions, and all organic nutrients occurs.

Bowman Capsule

A cup-like sac at the beginning of the tubular component of a nephron in the kidney that performs the first step in the filtration of blood to form urine.

Loop of Henle

A segment of the nephron in the kidney crucial for concentrating urine and conserving water.

Afferent Arteriole

The small artery that carries blood toward the capillaries in the glomerulus of the kidney.