Use the following to answer question(s): Markets and Efficiency

-(Exhibit: Markets and Efficiency) In panel (a):
A) the price of apples is $0.80 and the quantity demanded is Q₁.
B) the equilibrium price ensures that quantity demanded will match quantity supplied.
C) the equilibrium price ensures that there will be neither surpluses nor shortages.
D) all of the above are true.

Question

Use the following to answer question(s): Markets and Efficiency
 
-(Exhibit: Markets and Efficiency) In panel (a):
A) the price of apples is $0.80 and the quantity demanded is Q₁. 
B) the equilibrium price ensures that quantity demanded will match quantity supplied. 
C) the equilibrium price ensures that there will be neither surpluses nor shortages. 
D) all of the above are true.

Quizplus · Accepted Answer

Panel (a) shows the equilibrium point where the price of apples is $0.80 and the quantity demanded is Q₁. This ensures that quantity demanded will match quantity supplied, meaning that there will be neither surpluses nor shortages. Therefore, all of the above statements (A, B, and C) are true.

Use the Following to Answer Question(s): Markets and Efficiency