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CIPS Exam L3M1 Topic 4 Question 14 Discussion

Actual exam question for CIPS's L3M1 exam

Question #: 14
Topic #: 4

[All L3M1 Questions]

Thinking about supply and demand, there is one price at which producers wish to sell the same amount as customers wish to buy: in other words, the market 'clears', without either a surplus of supply or unsatisfied demand. This price is called the - - - - - - - - price.

AEquidistant

BEquilibrium

CClearing

DEquivalium

Show Suggested Answer

Suggested Answer: D

The correct answer is, of course, 'monopoly'.

by Candida at Jul 03, 2024, 02:11 PM

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Ammie

2 days ago

D) Equivalium? Really? Sounds like someone's trying to be clever, but B) Equilibrium is the correct answer.

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Raylene

8 days ago

Hmm, 'Clearing' price sounds like the right term, but I think B) Equilibrium is the more standard economic concept they're looking for here.

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Brittni

10 days ago

I was a bit confused at first, but now I see it's the price where the market clears, without surplus or shortage. B) Equilibrium is the way to go.

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Ellsworth

19 days ago

The equilibrium price is the one that balances supply and demand - that seems to be the right answer. B) Equilibrium.

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Tresa

27 days ago

I'm not sure, but I think it's C) Clearing because it sounds like the market clears at that price.

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Eleonore

28 days ago

I agree with Man, because at equilibrium price, supply equals demand.

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Man

30 days ago

I think the answer is B) Equilibrium.

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