When a market is not in equilibrium:
A. a change in either supply or demand is required to reestablish equilibrium.
B. there is neither excess supply nor excess demand.
C. the economic motives of sellers and buyers will move the market to its equilibrium.
D. government intervention is required to achieve equilibrium.
Answer: C
You might also like to view...
The free rider problem is a situation in which
(a) effluents such as CFCs combine with ozone and decrease concentrations of that protective chemical. (b) one agent secures benefits that others pay for. (c) there are excessive subsidies given to polluting buses or other forms of mass transit. (d) perfect property rights exist.
If the absolute value of the price elasticity of demand for a product is greater than 1, then
A) quantity demanded is not very sensitive to price changes. B) demand is elastic. C) demand is unit-elastic. D) demand is inelastic.