CIPS Exam A6 Topic 5 Question 58 Discussion

Actual exam question for CIPS's A6 exam

Question #: 58
Topic #: 5

[All A6 Questions]

Which of the following best defines the term 'equilibrium price'? (2 marks)

AThe price at which the level of demand in a market exceeds the level of supply

BThe price at which all commodities are of equal value in a market

CThe price at which the level of supply in a market exceeds the level of demand

DThe price at which the level of supply in a market matches the level of demand.

Show Suggested Answer

Suggested Answer: A

by Glendora at Aug 03, 2024, 09:44 PM

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5 days ago

Equilibrium price, where supply and demand are in balance? That's a no-brainer. D is the way to go.

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7 days ago

Ah, the old equilibrium price question. I remember learning about this in Economics class. Option D is the winner for sure.

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9 days ago

Hmmm, I'm pretty sure the equilibrium price is the price where supply and demand intersect. Option D seems to be the most accurate definition.

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24 days ago

I'm not sure, but I think it's A. Demand exceeding supply makes more sense to me.

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1 months ago

I agree with Andrew, because equilibrium price is when supply equals demand.

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1 months ago

I think the answer is D.

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