1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tigry1 [53]
3 years ago
5

Which explains why the price indicated by p2 on the graph is higher than the equilibrium price? As prices rise, quantity demande

d goes up. As prices rise, quantity demanded goes down. As prices rise, quantity demanded stays the same. As prices rise, quantity demanded disappears.
History
2 answers:
blondinia [14]3 years ago
5 0

The economy operates according to the law of supply and demand for goods and services. According to this theory, the interaction between supply and demand for a good or service fits and the vector of adjustment is price.

If the price is high, there is more supply than demand. If the price is low, there is more demand than supply. If demand increases, price increases and supply increases. If demand falls, the price falls. That is, the price makes the interaction. There will be a moment where the quantity offered is exactly equal to the quantity demanded, at which point the price practiced is the equilibrium price.

So if an economy is in equilibrium at a time and then the price charged is higher than the equilibrium price, it means that demand has gotten higher than supply.

<u>However, none of the alternatives would explain why a price is charged above the equilibrium price.</u> <u>The answer is the reverse of what is written in alternative (A)</u>. The truth is this: As the quantity demanded rises, the price rises above the equilibrium price.  <u>This is the answer</u>.

The alternative (B) is true, although it does not answer the question of the problem. If prices rise, demand falls. This is because the high price discourages consumption.  

BTW, I'm an economist and I'm sure.

kozerog [31]3 years ago
4 0

The correct answer is A. As prices fall, quantity demanded goes up.

You might be interested in
List at least five ways in which the government is involved in the economic lives of the government or of its citizens.
cluponka [151]

The government

(1) provides the legal and social framework within which the economy operates

(2) maintains competition in the marketplace

(3) provides public goods and services

(4) redistributes income

(5) cor- rects for externalities

(6) takes certain actions to stabilize the economy.

 hopes this helps !!

3 0
3 years ago
What feet did the leadership of Czar Nicholas II during World War I have on Russia?
klemol [59]

Answer:

b

Explanation:

8 0
3 years ago
Read 2 more answers
What are Wilson’s objectives to the 14 points
Solnce55 [7]

Answer:

The 14 Points called for a just peace for all parties involved in the Great War, the end of secret treaties between nations, free trade among nations, freedom of the seas, self-determination for people under colonial rule, and an international group like the League of Nations to deal with world security.

8 0
3 years ago
Read 2 more answers
Which of the following statements is most accurate? Recent presidents have asked Congress to declare war many times and have nev
Oksanka [162]
Very good question...
5 0
3 years ago
How did the expansion of the Ottoman Empire affect global trade?
xenn [34]

Answer:

It held a virtual monopoly on trade between Europe and Asia as it controlled many of the trade routes. ... It gained control of most land routes to East Asia.

6 0
3 years ago
Read 2 more answers
Other questions:
  • On what issue did Federalists and Anti-Federalists disagree most strongly? A. Whether the Constitution gave the states too much
    12·2 answers
  • How did Adam Smith laws effect the industrial revolution?
    12·1 answer
  • Need help asap!!!!!!!
    11·1 answer
  • Which of the following statements best describes the use of the term “new world”?
    7·2 answers
  • Is battleground chicago a primary source ?
    15·1 answer
  • Which of these statements best explains the term “judicial review” created in Marbury v. Madison?
    5·1 answer
  • HELP TIMED!! U.S HISTORY EASY.
    7·2 answers
  • Plz help need today!
    13·2 answers
  • Max Weber is famous for his use of realistic types.
    15·2 answers
  • During Athens’ first democracy, the people?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!