Which of the Following Is the Correct Way to Describe

question 151

Multiple Choice

Which of the following is the correct way to describe equilibrium in a market?

• A)​At equilibrium, demand equals supply.
• B)​At equilibrium, quantity demanded equals quantity supplied.
• C)​At equilibrium, market forces no longer apply.
• D)​At equilibrium, the "fairest" price for output is achieved.

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Definitions:

Absolute Income Scale

A measure of an individual’s or household’s income level, without adjusting for inflation or cost-of-living differences.

Poverty Line

A defined income threshold below which individuals or families are considered to be living in poverty, contextual to each country's standard of living and cost of living.

In-Kind Transfers

Transfers of goods or services from one party to another as a form of payment or aid, rather than transferring cash.

Economic Pie

A metaphorical representation of a nation's total economic output, suggesting how much wealth is available for distribution among its population.