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Hitman42 [59]
3 years ago
10

In microeconomics, what occurs when equilibrium is reached

Business
2 answers:
stira [4]3 years ago
6 0

 

<u>In microeconomics, when equilibrium is reached, the prices are set. With the help of price studies, the demand and supply of a particular good also reached equilibrium. </u>

Further Explanation:

Microeconomics:

Microeconomics is the type of economics in which only one good is taking into consideration while studying. In this economics, the market studies only of particular one good. In macroeconomics, all the goods available in the market are taking into consideration. The price, demand, and supply of particular goods can be determined with the help of microeconomics.

Equilibrium:

Equilibrium means the demand and supply of particular goods equal at which the price of particular goods determined. Means the prices are set for particular goods. With the help of prices, we can measure the actual production in the economy and compute the gross domestic product of the economy. With the help of GDP, we can measure the actual growth in the,

In microeconomics, when the demand and supply of particular goods are equal, then the price is determined. Equilibrium demand helps us to know about in the case of price changes, by how much amount is changed. Equilibrium supply helps us to know about in the case of price changes, by how much amount of supply is,It helps in the prediction of future changes in the market.

Learn more:  

1. Learn more about demand and supply

<u>brainly.com/question/11220857 </u>

2. Learn more about economies of scale

<u>brainly.com/question/4127663 </u>

3. Learn more about economic elasticity

<u>brainly.com/question/2396092 </u>

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Microeconomics

Keywords: microeconomics, equilibrium, reached, the price, set, demand, and supply of particular goods, equal, gross domestic product.

Anna35 [415]3 years ago
3 0
Prices are set. ☺️☺️☺️☺️
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3 years ago
Using this feature will fit an image to the size of an image frame.
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Answer:

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Explanation:

8 0
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If a borrower can afford to make monthly principal and interest payments of 1000 and the lender will make a 30 year loan at 5 1/
Alexus [3.1K]

Answer:

The the largest loan this buyer can afford is 14,533.75.

Explanation:

This can be determined using the formula for calculating the present value of an ordinary annuity as follows:

Step 1: Calculations of the present value or the loan the buyer can afford for a 30 year loan at 5 1/2%

PV30 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV30 = Present value or the loan the buyer can afford for a 30 year loan at 5 1/2% =?

P = monthly payment = 1000

r = interest rate = 5 1/2% = 5.50% = 0.055

n = number of years = 30

Substitute the values into equation (1) to have:

PV30 = 1000 * ((1 - (1 / (1 + 0.055))^30) / 0.055)

PV30 = 1000 * 14.5337451711221

PV30 = 14,533.75

Step 2: Calculation of the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%

PV20 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where;

PV30 = Present value or the loan the buyer can afford for a 20 year loan at 4 1/2% =?

P = monthly payment = 1000

r = interest rate = 4 1/2% = 4.50% = 0.045

n = number of years = 20

Substitute the values into equation (1) to have:

PV20 = 1000 * ((1 - (1 / (1 + 0.045))^20) / 0.045)

PV20 = 1000 * 13.0079364514537

PV20 = 13,007.94

Conclusion

Since 14,533.75 which is the present value or the loan the buyer can afford for a 30 year loan at 5 1/2% is greater than the 13,007.94 which is the present value or the loan the buyer can afford for a 20 year loan at 4 1/2%, it therefore implies that the the largest loan this buyer can afford is 14,533.75.

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