Economists Emphasize the Importance of Equilibrium in Markets Because

question 58

Multiple Choice

Economists emphasize the importance of equilibrium in markets because

• A)trading in markets can only occur at the equilibrium price and quantity
• B)the behavior of buyers and sellers will automatically guide the market toward the equilibrium price and quantity
• C)all buyers and sellers are better off at the equilibrium point than any other price and quantity combination
• D)it represents a compromise between sellers hoping for low prices and buyers searching for high prices
• E)it is the only price-quantity combination that guarantees that the poorest members of society can purchase the good or service

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Definitions:

Foreign Oil

Oil that is sourced from countries other than one’s own, often importing to meet domestic demand.

Opportunity Cost

The cost of foregone alternatives; the loss of potential gain from other alternatives when one alternative is chosen.

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Electronic devices for receiving and displaying visual media, often used for broadcasting entertainment, news, and other information.

Bushels

A measure of volume used primarily for agricultural commodities, varying in actual weight depending on the substance being measured.