All categories

2 years ago

Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?

Business

1 answer:

Vsevolod [243]2 years ago

6 0

According to economic principles, as prices fall, quantity demanded goes up.

What is equilibrium price?

The market price at which the amount of goods supplied and the amount of goods sought are equal is referred to as the "equilibrium price."

The demand and supply model's reasoning is straightforward. For instance, when sugar prices are lower, the market's demand is automatically increased.

Excess demand is depicted in the graph. The price is less than the equilibrium price, as shown by p2 on the graph, since as the price decreases, the quantity demanded increases.

As a result, option (a) As prices fall, quantity demanded goes up is correct.

Learn more about on equilibrium price, here:

brainly.com/question/13458865

#SPJ1

You might be interested in

Explain how wheeled coach implements ABC analysis

sladkih [1.3K]

Through distinctive use of annual high dollar items, Wheeled Coach implements ABC analysis. ABC analysis is categorizing into A, B and C category.
A category represent some 15% of the total inventory items, but 70–80% of the total cost.
 B category represent 30% of the items and 15–25% of the value.
And C category represents 5% of the annual dollar volume, but about 55% of the total items.

3 0

3 years ago

A(n) ________ allows a customer to design a personalized product via the Internet and helps the company become more knowledgeabl

liberstina [14]

Answer:

Choiceboard.

Explanation:

A choiceboard is a tool used for a consumer to customize a product via the internet to their preferences and needs.

This is one way that can help companies create business and brand value, empowering the customer to choose features that best fit their style, and reduce the company's aftermarket costs and customer dissatisfaction. customers with product characteristics, and increasing the company's ability to identify preference patterns for use in product development.

8 0

3 years ago

The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team mem

IrinaVladis [17]

Answer:

C. increased diversification of Sierra Infusion.

Explanation:

The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the Board of Directors with a proposal for increased diversification of Sierra Infusion.

4 0

3 years ago

Determine the price in period 1 (the future) if 30 units of oil are consumed in period 0 (the present).

Dovator [93]

Answer:

$16.50

Explanation:

Note: The complete question is attached as picture below

We know that there is a total of 90 units of oil and 30 units is consumed in period 0.

So, in period 1, the consumption amount will be = 90-30=60 units.

So, Q1 = 192 - 8P

For 60 units, the price will be 60 = 192 - 8P

8P = 192 - 60

8P = 132

P = 132 / 8

P = 16.5

So, the price in period 1 is $16.50

8 0

3 years ago

What is the uses of trading, profit and lost account

Len [333]

The profit and loss account is used to determine the net profit of the business. The starting point for the profit and loss account is the balance carries down from the trading account which is the gross profit of business. Hope this helped you out...

4 0

3 years ago