During an economics exam, Sarah encounters a multiple-choice question about market equilibrium. She recalls that identifying key terms and planning her answer before looking at the options could help her. What strategy should Sarah apply to effectively approach this question?

To effectively approach the multiple-choice question about market equilibrium, Sarah should first take a moment to identify the key terms related to the topic, such as "supply," "demand," and "equilibrium price. " By understanding these concepts, she can think about how they interact with each other in the market. Next, she should plan her answer by recalling that market equilibrium occurs when the quantity of goods supplied equals the quantity demanded, meaning there is no surplus or shortage. For example, if the price of apples is set too high, fewer people will buy them, leading to a surplus, while a low price may cause a shortage. By focusing on these ideas, Sarah can then evaluate the answer choices more effectively and select the one that best reflects her understanding of market equilibrium.