Author Question: If the current price of a good is the same as that found at the intersection of the market demand ... (Read 122 times)

ssal · **on:** Jun 30, 2018

If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then:
a. excess demand exists.
b. excess supply exists.
c. price will rise.
d. price will fall.
e. the market is in equilibrium.

Question 2

The most important characteristic of the equilibrium price is that it:
a. guarantees that producers earn profit.
b. clears the market.
c. increases the quantity demanded.
d. decreases the quantity demanded.