1. Define "equilibrium price" and name the mechanism for setting this price in a free- market system.

Economic theory suggests that, in a free market there will be a single price which brings demand and supply into balance, called equilibrium price. Both parties require the scarce resource that the other has and hence there is a considerable incentive to engage in an exchange.

South carolina was so angry about the election of lincoln that they seceded from the union on december 20, 1860. they attacked fort sumter later, on april 12, 1861.