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:

Upper-Class

A social group at the top of a societal hierarchy, often holding the most wealth, power, and privilege.

Middle-Class

A social group between the working class and the upper class, often defined by moderate income levels and educational attainment.

Empiricism

A theory that states that knowledge comes only or primarily from sensory experience, emphasizing the role of experience and evidence in the formation of ideas.

Observations

The act of closely monitoring or noting phenomena or behaviors to gather information, often used in research and study.