Which of these situations best illustrates market equilibrium? A. The price of soap does not vary much from week to week. B. Soap production ensures a good profit for the manufactu... Which of these situations best illustrates market equilibrium? A. The price of soap does not vary much from week to week. B. Soap production ensures a good profit for the manufacturer. C. Everyone who wants or needs soap can easily afford to buy it. D. The amount of soap made matches the amount of soap that people want to buy. How is the market-clearing price determined? A. It is fixed by each manufacturer. B. It is reached through trial and error. C. It is calculated by economic analysts. D. It is set by a government commission.
Understand the Problem
The questions are asking about market equilibrium and the market-clearing price, concepts related to economics. The first question seeks to identify a situation that exemplifies market equilibrium, while the second question focuses on how the market-clearing price is determined. These concepts are foundational in understanding supply and demand dynamics in economics.
Answer
D; B
The best illustration of market equilibrium is D: The amount of soap made matches the amount of soap that people want to buy. The market-clearing price is determined through B: It is reached through trial and error.
Answer for screen readers
The best illustration of market equilibrium is D: The amount of soap made matches the amount of soap that people want to buy. The market-clearing price is determined through B: It is reached through trial and error.
More Information
Market equilibrium is achieved when supply meets demand, with the market-clearing price emerging as producers and consumers adjust to reach this balance.
Tips
Avoid assuming prices are fixed by external factors; they adjust based on supply and demand interactions.
Sources
- Market equilibrium and market-clearing price - Brainly - brainly.com
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