In a market, competitive forces guarantee that any price other than the equilibrium price is:

Question

Quizplus · Accepted Answer

Competitive forces in a market push prices towards the equilibrium price, where supply and demand are balanced, and all goods and services are sold. Any price that is not the equilibrium price is temporary because it will result in either a surplus or a shortage, leading to market adjustments to return prices to the equilibrium level. Therefore, the correct answer is (C) temporary.

In a Market, Competitive Forces Guarantee That Any Price Other