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.
Answer:
Despite having been written more than 50 years ago, Mao Zedong's "Serve the People" speech is still relevant today because it explains how Chinese citizens had to live during the Communist era. Mao called for sacrificing one's own well-being to advance the greater good, offering constructive criticism to the government, and promoting unity among the people in his speech. He touched on this in addition to touching on how sacrificing your life for your people will make your death more memorable; however, if you lead a life that is insignificant and inconsequential, your death will be unremarkable. This offers us an excellent example of how Mao expected his people to live in Communist China, and because of this, it is an important historic document. Additionally, people will look at Mao's speech in different ways because they will see it in a different light. In other words, to really understand Mao's speech "Serve the People," the speech must be discussed and debated, as it will be in school. Although Mao Zedong's speech is important to literature and history, in reality, no one remembered what he said.
Explanation:
Answer:
b companies reduce regulations an taxes on a produc
I am pretty sure your answer is B
