Asked by Emily_ nicole on Jun 04, 2024
Verified
Which of the following is not true of equilibrium price?
A) All consumers can buy all they demand.
B) It is determined by the interaction of supply and demand.
C) It is set by the government.
D) It is also known as the market-clearing price.
Equilibrium Price
The rate at which the supply of goods equals the demand for goods.
- Detail the attributes and causes leading to market equilibrium.
Verified Answer
FU
Frank UriasJun 09, 2024
Final Answer :
C
Explanation :
Equilibrium price is not set by the government, but it is determined by the interaction of supply and demand. At equilibrium price, all consumers can buy all they demand and it is also known as the market-clearing price.
Learning Objectives
- Detail the attributes and causes leading to market equilibrium.