jan 20, 2017 got inaugrated
jan 27, 2017 travel ban
mar 28, 2017 reversal on environmental protection
may 17, 2017 Robert Muller chosen as special counsel
aug 21, 2017 US increases presence in Afghanistan
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.
States because the American people wanted to prevent the central government from becoming tyrannical. But the central government was too weak and could not rely on the states for support.
By 2000, 200 countries held multi party elections, globalization and increased connectivity among states, greater awareness among different peoples. Also the role of the media was very important in spreading news about democracy.
