Asked by
Yajaira Uranga
on Oct 25, 2024
Verified
As long as the actual market price exceeds the equilibrium market price, there will be:
A) downward pressure on the market price.
B) upward pressure on the market price.
C) no purchases made.
D) Both A and C are correct.
E) Both B and C are correct.
Market Price
The contemporary valuation at which a commodity or service can be acquired or disposed of in a commercial environment.
Equilibrium Market Price
The cost level where the amount of products offered matches the amount of products sought after in a marketplace.
Downward Pressure
A force or condition that causes prices or values to decrease or decline in a market.
- Gain an understanding of the concept of market stability and how it comes into being.
Verified Answer
JS
Learning Objectives
- Gain an understanding of the concept of market stability and how it comes into being.