Which of the following statements correctly describes perfectly competitive market equilibrium?
A) There is always excess supply or excess demand when the market is in equilibrium.
B) Multiple equilibriums are possible for a given set of demand and supply curves.
C) Government intervention is necessary for the market to reach equilibrium.
D) Any deviation from equilibrium is automatically restored.
D
You might also like to view...
Which of the following would most likely be a public good?
A) Sirius Satellite Radio is accessed through a subscription. B) iTunes sells songs through their website. C) a Mariah Carey CD D) Michigan Radio is the state's most listened-to public radio service.
We would expect unions to have a more difficult time negotiating higher wages for their members when
A) labor represents a small portion of total costs. B) the product produced makes up a small portion of families' budgets. C) the product produced has several close substitutes. D) there are not good substitutes for labor in the production process.