Asked by Jessica Jacobi on Sep 24, 2024

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​Which of the following statements is true

A) ​in market equilibrium there are unconsummated value-creating transactions
B) in market equilibrium there are unconsummated wealth-destroying transactions
C) in market equilibrium there are no unconsummated wealth-creating transactions
D) ​none of the above

Market Equilibrium

A state where supply equals demand, resulting in stable prices and quantities in the marketplace.

Wealth-Creating Transactions

Transactions that increase the wealth of the participating parties, usually through the production, exchange, or transfer of goods and services.

Wealth-Destroying Transactions

Transactions that result in a decrease in the overall wealth of the participants, often due to negative externalities or inefficient allocation of resources.

  • Grasp the approach to attain market equilibrium and the outcomes of straying from this equilibrium.
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SR
Sebastian Rodrigiez4 days ago
Final Answer :
C
Explanation :
In market equilibrium, all value-creating transactions have been consummated and no further wealth-creating opportunities exist, therefore there are no unconsummated wealth-creating transactions. Option A is incorrect because in market equilibrium, all value-creating transactions have been consummated, so there are no unconsummated transactions. Option B is incorrect because, in a well-functioning market, there will be no unconsummated wealth-destroying transaction because such transactions would not be profitable and would not take place in the first instance. Option D is incorrect since option C is true.