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:

Higher Prices

Increased costs for goods or services, often resulting from factors like high demand, low supply, or increased production costs.

Clicks-And-Mortar

Refers to businesses that combine online digital presence (clicks) with physical storefronts (mortar) to offer a comprehensive retail experience.

E-Book

A digital format of a book, accessible on electronic devices such as e-readers, tablets, and computers.

Degree of Digitization

The extent to which processes, operations, or systems are converted or adapted to digital form, impacting efficiency, accessibility, and innovation.