Chapter 9, Problem 5AA

To determine

To find: The word that completes the given sentence.

Answer to Problem 5AA

The correct word that completes the sentence is interact.

Explanation of Solution

The equilibrium price refers to the price at which the demand for the goods is the equivalent of the supply of the goods. It is the price where the needs of producers and the consumers settles. It is usually used in perfect competition. The state of equilibrium can change if there is a change in demand or supply leading to change in prices. However, in the long term, the markets will eventually attain equilibrium.

Economics Concept Introduction

Introduction: Competition refers to the rivalry between market forces which can be companies, firms or even small sized local stores. The competition is usually between the market forces selling similar or identical goods or services.