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:

American Capitalist Society

A society characterized by a capitalistic economy, where private ownership, profit motive, and market competition are prevalent.

Ethnic Conspiracy

A belief or theory that a particular ethnic group is secretly working to achieve malignant goals.

Organized Crime

Structured groups engaged in criminal activities, often for profit, such as drug trafficking, extortion, and money laundering.

Burglary

The unlawful entry into a building with the intent to commit a crime, typically theft.