Which of the following statements is an example of the equilibrium principle?
A) If the price in a market is higher than the equilibrium price,excess supply will put pressure on the price to rise.
B) If the price in a market is lower than the equilibrium price,excess demand will put pressure on the price to fall.
C) If the price in a market is higher than the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales.
D) If the price in a market is lower than the equilibrium price,consumers have an incentive to reduce the price in order to obtain the good.
E) If the price in a market is equal to the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is an example of the equilibrium principle?
A) If the price in a market is higher than the equilibrium price,excess supply will put pressure on the price to rise.
B) If the price in a market is lower than the equilibrium price,excess demand will put pressure on the price to fall.
C) If the price in a market is higher than the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales.
D) If the price in a market is lower than the equilibrium price,consumers have an incentive to reduce the price in order to obtain the good.
E) If the price in a market is equal to the equilibrium price,suppliers have an incentive to reduce the price in order to increase their sales.

Which of the Following Statements Is an Example of the Equilibrium