The equilibrium principle implies that there are
A) never any valuable opportunities to exploit,because the market is always in equilibrium.
B) always valuable opportunities to exploit,because the market is never in equilibrium.
C) valuable opportunities to exploit only when the market is not in equilibrium.
D) valuable opportunities to exploit only when the market is in equilibrium.
E) valuable opportunities to exploit only when the government intervenes in the market.

Question

Quizplus · Accepted Answer

The equilibrium principle suggests that in a market where demand and supply meet, there is no incentive to change the current price or quantity. However, if the market is not in equilibrium (i.e., there is excess demand or supply), it presents an opportunity for individuals or firms to act and seek profits until the market reaches equilibrium. Therefore, valuable opportunities to exploit only arise when there is disequilibrium in the market. Choice C correctly reflects this principle.

The Equilibrium Principle Implies That There Are