Asked by Katia Mejia on Jul 21, 2024
Verified
The actions of buyers and sellers naturally move markets toward equilibrium.
Buyers and Sellers
Participants in a market who exchange money for goods or services, where buyers provide the money and sellers provide the goods or services.
Markets
Markets are arenas in which buyers and sellers come together to exchange goods, services, or financial instruments at determined prices.
Equilibrium
A situation in the market where demand matches supply, resulting in steady prices.
- Understand how market mechanisms naturally move towards equilibrium.
Verified Answer
MF
milan franciscoJul 26, 2024
Final Answer :
True
Explanation :
In a market economy, the actions of buyers and sellers in response to prices and demand naturally push markets toward an equilibrium point where the quantity supplied equals the quantity demanded.
Learning Objectives
- Understand how market mechanisms naturally move towards equilibrium.