Asked by Narendrakumar Chowdary on Jun 04, 2024
Verified
At equilibrium,each of these is true except
A) quantity demanded equals quantity supplied.
B) the price has no tendency to change.
C) market price equals equilibrium price.
D) there may be a shortage or a surplus.
Equilibrium
The state in which market supply and demand balance each other, and as a result, prices become stable.
Shortage
A situation in which the demand for a product or service exceeds the available supply, often leading to higher prices or unmet demand in the market.
Surplus
A situation where the quantity supplied of a good exceeds the quantity demanded at the current price, often leading to a decrease in prices.
- Learn to discern the principle of equilibrium within a market, influenced by demand and supply dynamics.
Verified Answer
Learning Objectives
- Learn to discern the principle of equilibrium within a market, influenced by demand and supply dynamics.
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