If the price of good is equal to the equilibrium price ?
Correct answer: B. the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged
- A. there is a shortage and the price will fall
- B. the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged
- C. there is surplus and the price will rise
- D. there is a shortage and the price will rise
- E. there is a surplus and the price will fall
Explanation
At the equilibrium price, buyers wish to purchase exactly the amount sellers wish to sell, so there is neither a shortage nor a surplus and no pressure for price to change.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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