What does the equilibrium of supply and demand in a market do?
a) It maximizes the prices at which producers are willing to sell.
b) It minimizes the prices that consumers are willing to pay.
c) It produces both an efficient and equitable market outcome.
d) It maximizes the total benefits received by buyers and sellers.
Ans: d) It maximizes the total benefits received by buyers and sellers.
You might also like to view...
Which of the following statements concerning perfect competition is not true?
a. Firms are price takers. b. The demand curve facing an individual firm is horizontal. c. A firm's demand curve is identical to its marginal revenue curve. d. The firms produce differentiated products. e. If a firm raises its price, it will lose all of its customers.
Member banks of the Federal Reserve System
a. advise the Fed on monetary policy. b. are immune from the effects of monetary policy. c. vote on members of the Board of Governors. d. have little control over the system they "own."