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:

Everyday People

Ordinary individuals who go about their daily lives, often referenced to represent the average citizen or the general population.

Sentence Variety

The practice of varying the length, structures, and types of sentences in a piece of writing to improve readability and interest.

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The nickname for Motown Records' first headquarters in Detroit, which became the birthplace of numerous hit songs in the 1960s.

Motown Records

An American record label known for its significant role in the racial integration of popular music and its success with many major artists during the 1960s and beyond.