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:

Causa Mortis

Refers to a gift given by someone in expectation of their imminent death, with specific legal ramifications.

Distant Future

A time period that is significantly far ahead, often undefined and speculative.

Trade Dress

The overall appearance and image of a product.

Trademark

A distinctive sign, symbol, or phrase legally registered or established by use as representing a company or product.