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.
Correct Answer:
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