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anygoal [31]
3 years ago
15

The graph shows a point of equilibrium. If supply for a product is low but demand is high, what most likely needs to happen to a

chieve equilibrium? The price needs to be raised. The price needs to be lowered. The supply needs to be raised. The demand needs to be lowered.
History
1 answer:
Vikki [24]3 years ago
5 0

The correct answer is "The price needs to raised".

In demand vs offer chart for any good, whenever there is an increase in the demand but the supply

  • remains constant,
  • declines
  • experiences smaller growth in comparison to that of the demand

This will lead to an increase in price. As producers see a window of opportunity to get the most profit possible of an increasing wave of demand. The price will grow until the new <em>"point of equilibrium"</em> is reached, which is the amount the overall demanding customer is willing to pay for that good.

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