The tendency of markets to automatically gravitate toward equilibrium is an application of the:
A)Scarcity Principle.
B)Cost-Benefit Principle.
C)Principle of Comparative Advantage.
D)Incentive Principle.

Question

Quizplus · Accepted Answer

When buyers and sellers follow their private incentives, they will take actions that cause market prices and quantities to gravitate toward equilibrium.

The Tendency of Markets to Automatically Gravitate Toward Equilibrium Is