A Market Comprised of a Downward-Sloping Demand Curve That Intersects

question 49

Multiple Choice

A market comprised of a downward-sloping demand curve that intersects an upward-sloping supply curve is said to be stable because:

• A)price will never change.
• B)quantity will never change.
• C)demand will never change.
• D)at any price other than equilibrium, forces in the market move price towards the equilibrium.

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Definitions:

Reciprocal Treatment

An approach where actions or attitudes are mutually exchanged or reflected between parties.

Law of Equity

A body of law that provides remedies and relief in situations where strict legal rules would be unfairly rigid, focusing on fairness and justice.

Gratuitous Promise

A vow or commitment to do something for someone else without expecting anything in return.

Breach of Contract

The act of breaking any terms and conditions that were mutually agreed upon in a legally enforceable contract.