Which statement best explains the law of supply?
2 answers:
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Answer:
Monetary downturn would perpetually cause fall in total interest in economy. Thus, interest for online music will fall also. Request bend will move to left and equilibrium will be built up at lower point. Following is chart:
Cost of houses Supply Old balance cost New Demand cost new equilibrium amount Old
Equilibrium value: Falls
Equilibrium Quantity: Falls.
In above graph DD tumbles to leftwards and now request bend converges the SS or supply bend at lower point. Balance is accomplished at lower point where both cost just as amount fall.
Answer:
a. Anywhere inside or on the production possibilities frontier.
Explanation:
In an economy, the allocative efficiency may be defined as the economic state where the production of various goods or services is aligned with the preferences with the consumers.
The allocative efficiency always materializes at the intersection of the supply curves and the demand curves.
On the the price for a supply
with the demand for the product
at that price, and thus all the products are sold.
It occurs anywhere on the production possibilities frontier or on the inside of the frontier.
Therefore, the correct option is (a).