If the Price of an Item Can Freely Adjust, a Market

question 285

Multiple Choice

If the price of an item can freely adjust, a market will

• A) always move towards equilibrium.
• B) always have an excess quantity demanded.
• C) always have an excess quantity supplied.
• D) never move towards equilibrium because prices are always increasing.

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Definitions:

Laundry Services

A service offering washing, drying, and often ironing of clothes and linens for customers.

Stockholders

Owners of a corporation due to their purchase of stock in the corporation.

Family-Owned Businesses

Enterprises owned and operated by members of one or more families, often passed down through generations.

Closed Corporations

A type of corporation that is held by a few owners, does not offer its stocks for public sale, and is exempt from certain regulations.