The equilibrium principle implies that the market prices of privately-owned resources will eventually ________ their economic value.
A) be higher than
B) be equal to
C) be less than
D) with government intervention,be equal to
E) be higher than or equal to

Question

Quizplus · Accepted Answer

The equilibrium principle states that the market prices of goods and services will eventually reach a point where the quantity supplied equals the quantity demanded. This also applies to privately-owned resources. The economic value of a resource is determined by its usefulness or benefit to society, which is reflected in the price that consumers are willing to pay for it in the market. Thus, in a free market, the market price of a resource will reach a point where it is equal to its economic value.

The Equilibrium Principle Implies That the Market Prices of Privately-Owned