🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
133
views

The most important characteristic of the equilibrium price is that it ________.
 
a. guarantees that producers earn profit
 
b. maximizes the quantity supplied
 
c. maximizes the quantity demanded
 
d. minimizes the quantity demanded
 
e. clears the market, leaving neither a surplus nor a shortage

Watch
1
answer
0
watching
133
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Ronaldo Mendoza
Ronaldo MendozaLv10
8 Oct 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

1. Market equilibrium occurs when

a. demand equals supply

b. quantity demanded equals quantity supplied

c. The consumer expectations match the producer's expectations

d. Efficiency and equal distribution are achieved 

 

2. If a surplus exists in a market, then

a. Price is above market equilibrium and quantity demanded is less than quantity supplied

b. Price is below market equilibrium and quantity demanded is less than quantity supplied

c. Price is above market equilibrium and quantity demanded is greater than quantity supplied

d. Price is below market equilibrium and quantity demanded is greater than quantity supplied

 

3. When the price falls below market equilibrium

a. A surplus occurs

b. A shortage occurs

c. There will be an increase in quantity supplied

d. There will be a leftward shift of the supply curve

 

The point at which the supply curve and the demand curve intersect is called:

A. Equilibrium, because quantity demanded equals quantity supplied so there is no tendency for price to change.

B. Equilibrium, because quantity demanded exceeds quantity supplied so there is a shortage

C. Equilibrium, because quantity supplied exceeds quantity demanded so there is a surplus

D. Irrelevant, because real-world prices never reach this point 

When a shortage exists in a market, sellers:

A) Raise the price, which increases the quantity demanded and decreases the quantity supplied until the shortage is eliminated.

B) Raise the price, which decreases the quantity demanded and increases the quantity supplied until the shortage is eliminated.

C) Lower the price, which increases the quantity demanded and decreases the quantity supplied until the shortage is eliminated.

D) Lower price, which decreases the quantity demanded and increases the quantity supplied until the shortage is eliminated.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in