The tendency of markets to automatically gravitate toward equilibrium is an application of which core principle?
A)The Scarcity Principle
B)The Cost-Benefit Principle
C)The Principle of Comparative Advantage
D)The Incentive Principle

Question

Quizplus · Accepted Answer

The Incentive Principle explains how individuals and firms respond to incentives, leading to adjustments in supply and demand that drive markets toward equilibrium.

The Tendency of Markets to Automatically Gravitate Toward Equilibrium Is