Which of the Following Is True of a Market Equilibrium

question 38

Multiple Choice

Which of the following is true of a market equilibrium?

• A)At equilibrium, demand equals supply.
• B)At equilibrium, quantity demanded equals quantity supplied.
• C)At equilibrium, market forces no longer apply.
• D)At equilibrium, the "fairest" price for output is achieved.
• E)At equilibrium, all the producers maximize their profits.

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Definitions:

Investing Activity

Transactions and events that involve the purchase and/or sale of long-term assets and other investments, as shown in a company’s cash flow statement.

Income Statement

A financial document that reports a company's revenues, expenses, and net profit or loss over a specific period of time.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting its liquidity.

Cash Paid

The amount of money that has been disbursed or paid out by a business or individual.