The Equilibrium Point Represents the Only Price-Quantity Combination in a Market

question 22

Multiple Choice

The equilibrium point represents the only price-quantity combination in a market that:

• A)causes both buyers and sellers to agree to a price increase.
• B)causes both buyers and sellers to agree to a price decrease.
• C)exactly matches the independent plans of buyers and sellers.
• D)allows buyers to purchase what they want.
• E)allows sellers to earn a positive profit.

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Definitions:

Transaction Date

The date on which a trade or a financial transaction is completed or settled.

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

Credit in finance represents a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.

Transaction

A financial event that changes the balance of two or more accounts.