A Market Is in Equilibrium When

question 318

Multiple Choice

A market is in equilibrium when

• A) the quantity demanded equals the quantity supplied at the market clearing price.
• B) the horizontal axis crosses the vertical axis.
• C) buyers do not desire for the price to be any lower.
• D) the equilibrium price is below the market price.

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Definitions:

Marginal Utility

The boost in contentment or usefulness a consumer gets from purchasing one more unit of a product or service.

Dozen Oysters

A quantity unit referring to a grouping of twelve oysters, often used in the sale and serving of this seafood.

Beers

Alcoholic beverages made from fermented grains, primarily barley, and flavored with hops and other ingredients.

Indeterminate

A situation or outcome that is not clearly defined or decided, often because of complex or uncertain variables.