In the Context of the Fundamental Principles of a Free

Multiple Choice

In the context of the fundamental principles of a free market system, which of the following statements is true of the equilibrium price?

A) Market prices adjust toward the point where the supply curve and the demand curve intersect.
B) The break-even point denotes the profit margin that a seller makes over the cost price of a product.
C) It is the point at which the final cost of production equals the price of the raw materials used for a product.
D) It refers to a situation where the cost price of a product is equal to its selling price.