The Most Important Characteristic of the Equilibrium Price Is That

question 100

Multiple Choice

The most important characteristic of the equilibrium price is that it _____

• A) guarantees that producers earn profit.
• B) clears the market, leaving neither a surplus nor a shortage.
• C) maximizes the quantity demanded of a good.
• D) minimizes the quantity demanded of a good.
• E) guarantees that buyers maximize their utility.

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Definitions:

Months

Units of time, approximately 1/12th of a year, used in calendars to segment time.

Maturity Value

The total amount that will be paid to the investor at the end of a fixed-income investment's life.

Months

Units of time, each roughly equivalent to one twelfth of a year, used in planning and organizing.

Rate Of Interest

The percentage of the principal that will be charged for a particular period of time, normally one year.