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9. When Adam Smith talked about "the invisible hand" he argued that: a. High transaction costs normally prevent markets from achieving equilibrium. b. Prices, in the long run, end up where both fairness and efficiency are achieved. c. Changing prices leads to an "end" which buyers and sellers are not totally pleased with, but one that is efficient. d. e. f. Create mutually agreed upon prices over time if the market is subsidized. As prices increase, demand falls, but supply rises, creating an equilibrium outcome. Self-interested activities help eliminate shortages and surpluses if price ceilings and price floors are effectively utilized.

9. When Adam Smith talked about "the invisible hand" he argued that: a. High transaction costs normally prevent markets from achieving equilibrium. b. Prices, in the long run, end up where both fairness and efficiency are achieved. c. Changing prices leads to an "end" which buyers and sellers are not totally pleased with, but one that is efficient. d. e. f. Create mutually agreed upon prices over time if the market is subsidized. As prices increase, demand falls, but supply rises, creating an equilibrium outcome. Self-interested activities help eliminate shortages and surpluses if price ceilings and price floors are effectively utilized.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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9. When Adam Smith talked about "the invisible hand" he argued that: a. High transaction costs normally prevent markets from achieving equilibrium. b. Prices, in the long run, end up where both fairness and efficiency are achieved. c. Changing prices leads to an "end" which buyers and sellers are not totally pleased with, but one that is efficient. d. Create mutually agreed upon prices over time if the market is subsidized. e. As prices increase, demand falls, but supply rises, creating an equilibrium outcome. f. Self-interested activities help eliminate shortages and surpluses if price ceilings and price floors are effectively utilized.
Transcribed Image Text:9. When Adam Smith talked about "the invisible hand" he argued that: a. High transaction costs normally prevent markets from achieving equilibrium. b. Prices, in the long run, end up where both fairness and efficiency are achieved. c. Changing prices leads to an "end" which buyers and sellers are not totally pleased with, but one that is efficient. d. Create mutually agreed upon prices over time if the market is subsidized. e. As prices increase, demand falls, but supply rises, creating an equilibrium outcome. f. Self-interested activities help eliminate shortages and surpluses if price ceilings and price floors are effectively utilized.
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