When a Perfectly Competitive,well-Functioning Market Is Not in Equilibrium

question 104

Multiple Choice

When a perfectly competitive,well-functioning market is not in equilibrium:

• A) total surplus can be increased by a change in market price.
• B) the market is not efficient.
• C) there are exchanges that can make some better off without someone becoming worse off.
• D) All of these are true.

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Definitions:

Life Expectancy

The average number of years an individual or population is expected to live, based on current mortality rates and other demographic factors.

Regression Model

A statistical technique used to predict the value of a dependent variable based on the values of one or more independent variables.

Coefficient

Before a variable in an algebraic expression, there lies a constant or numerical amount that serves to multiply it.

Constant

A fixed value in mathematics and science that does not change in a given context, often represented by a symbol.