Which of the Following Statements Is an Example of the Equilibrium

question 39

Multiple Choice

Which of the following statements is an example of the equilibrium principle?

• A) If the price in a market is higher than the equilibrium price,excess supply will put pressure on the price to rise.
• B) If the price in a market is lower than the equilibrium price,excess demand will put pressure on the price to fall.
• C) If the price in a market is higher than the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales.
• D) If the price in a market is lower than the equilibrium price,consumers have an incentive to reduce the price in order to obtain the good.
• E) If the price in a market is equal to the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales.

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Definitions:

Centralization

The accumulation of decision-making power at the uppermost tiers of an organization's structure.

Purchasing

The process of obtaining goods or services, typically for business purposes.

Supply Chain Management

The supervision and management of materials, data, and monetary resources as they transition from the supplier, through the manufacturer and wholesaler phases, ultimately reaching the retailer and consumer.

On-time Availability

The state or characteristic of being ready for use or accessible exactly when needed or promised.