GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is an implicit agreement between the buyers and the sellers
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Equilibrium
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Surplus
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Shortage
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Waste
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Explanation:
Detailed explanation-1: -Implicit contract theory is a term used in economics, attempting to explain why there are redundancies and layoffs instead of price adjustments/decreases in wages in the labour market during a recession.
Detailed explanation-2: -At the equilibrium price, there is no shortage or surplus: The quantity of the good that buyers are willing to buy equals the quantity that sellers are willing to sell. Buyers can buy the quantity they want to buy at the market price, and sellers can sell the quantity they want to sell at the market price.
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