Asked by Jessica Jacobi on Sep 24, 2024
Verified
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.
Verified Answer
Learning Objectives
- Grasp the approach to attain market equilibrium and the outcomes of straying from this equilibrium.
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