Author Question: The equilibrium point represents the only price-quantity combination in a market that a. causes ... (Read 31 times)

Haya94 · **on:** Jul 1, 2018

The equilibrium point represents the only price-quantity combination in a market that
a. causes both buyers and sellers to agree to a price increase
b. causes both buyers and sellers to agree to a price decrease
c. exactly matches the independent plans of buyers and sellers
d. allows buyers to purchase what they want
e. allows sellers to earn a profit

Question 2

Economists emphasize the importance of equilibrium in markets because
a. trading in markets can only occur at the equilibrium price and quantity
b. the behavior of buyers and sellers will automatically guide the market toward the equilibrium price and quantity
c. all buyers and sellers are better off at the equilibrium point than any other price and quantity combination
d. it represents a compromise between sellers hoping for low prices and buyers searching for high prices
e. it is the only price-quantity combination that guarantees that the poorest members of society can purchase the good or service