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https://dominicanu.instructure.com/courses/92 9/quizzes/1853153/take | All of th

ID: 1132614 • Letter: H

Question

https://dominicanu.instructure.com/courses/92 9/quizzes/1853153/take | All of the following are characteristic of a market equilibrium price with one exception. The exception is: Consumers who are willing to pay the equilibrium price can acquire the good. O It measures the value of the last unit sold to consumers. O It is always a fair and just price. Firms who are willing to accept the equilibrium price can sell what they produce. It measures the cost of resources required to produce the last unit.

Explanation / Answer

ANSWER:

4) THE CORRECT ANSWER IS OPTION C THAT IS IT IS ALWAYS A FAIR AND JUST PRICE AS THE PRICE IS MERELY AN OUTCOME OF THE QUANTITY SUPPLIED AND QUANTITY DEMANDED.

5) THE CORRECT ANSWER IS OPTION E THAT IS SMALLER OF THE QUANTITY DEMANDED AND QUANTITY SUPPLIED BECAUSE WHEN THERE IS NO EQUILIBRIUM , THERE WILL BE EITHER EXCESS DEMAND OR EXCESS SUPPLY AND DUE TO WHICH THE SMALLER SIDE OF THE MARKET DETERMINES THE QUANTITY SOLD.