Prices that equate the supply and demand for each good are called
A) competitive prices
B) blocked prices
C) Cournot prices

Question

Quizplus · Accepted Answer

Competitive prices are the prices at which the quantity demanded equals the quantity supplied, and there is no tendency for the price to rise or fall. This occurs in a perfectly competitive market where there are many buyers and sellers, and no one has the power to influence the market price. Blocked prices and Cournot prices are not common terms in economics and do not accurately describe the equilibrium price in a market.

Prices That Equate the Supply and Demand for Each Good