In a Market System, What Must Take Place for Quantity

question 101

Multiple Choice

In a market system, what must take place for quantity demanded to continually be equated with quantity supplied?

• A) Price controls must be applied by governments.
• B) Relative prices must be able to adjust to market clearing levels.
• C) Tastes and preferences of consumers must adjust to eliminate surpluses or shortages.
• D) Businesses must engage in involuntary, unprofitable exchanges to eliminate surpluses or shortages.

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Definitions:

Minimum Wage Legislation

Laws that set the lowest hourly, daily, or monthly remuneration that employers can legally pay their workers.

On-the-job Training

Training provided to employees while they perform their regular work tasks, aimed at enhancing their skills and efficiency.

Teenagers

Young people typically aged between 13 and 19 years, often characterized by rapid physical and psychological development.

Income Increases

A rise in the amount of money earned by individuals or households over a period.