When the price floor is set above the equilibrium price, the quantity supplied exceeds the quantity demanded, creating an oversupply or surplus. When government laws regulate prices instead of letting market forces set prices, this is the equilibrium price affect quantity demanded and quantity supplied.
If demand does not change, there is an inverse relationship between supply and price of goods and services. When the supply of goods and services increases at the same demand, prices tend to fall resulting in lower equilibrium prices and higher equilibrium quantities of goods and services.
Setting the price cap below the equilibrium price causes demand to exceed supply, resulting in overdemand or shortage. A floor price prevents the price from falling below a certain level.
Learn more about equilibrium at
brainly.com/question/517289
#SPJ4
The economy's self-correcting property is the fact that output gaps won't last indefinitely, but will be closed by rising or falling prices.
The output gap is the difference, expressed as a percentage of gross domestic product, between an economy's actual output and its highest potential output. An output gap can be either favorable or negative for a nation.
A negative output gap indicates that the economy's actual output is below its maximum capacity, whereas a positive output gap indicates that the economy is beating expectations because its actual output is higher than its acknowledged maximum output. The output gap helps paint a picture of how the economy is doing because the gross domestic product is used in its computation.
To learn more about output gaps, visit the link below:
brainly.com/question/29433322
#SPJ4
Copy and paste it in google see what it gives u
Answer:
limit supplier bargaining power.
Explanation:
Switching costs from industry refers to cost of moving from that industry to another industry.
If these costs are high, industry members would feel pressure to stay in the industry to avoid the high switching costs. So, they would tend to stick to industry. Members' this tendency to stay in industry irrespective of issues, is likely to reduce their bargaining power in the market.
Answer:
how your day is going good?
