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:
Dictatorial leaders such as these represent the extreme potential of the human capacity for evil, and yet, despite their apparent omnipotence within their individual spheres of power, these individuals also tended to suffer from excessive anxiety – mostly regarding paranoid fears of citizen uprising and/or assassination.
Explanation:
Where are the answer choices? :^)
Tsar Nicholas II created the October manifesto
Sparta had a highly unusual system of government.
Two kings ruled the city, but a 28-member 'council of elders' limited their powers.
These men were recruited from the highest social class, the aristocratic Spartiates. Rather like medieval knights, the Spartiates were a class of military professionals who lived most of their lives in communal barracks. Rarely seeing their wives and children, their lands were farmed by slaves, leaving them free to pursue to the arts of war.
Beneath this highest class was a middle class, called the Perioeci. Made up of a farmers and artisans who were the descendants of those peoples whom the Spartans had first conquered, the Perioeci paid taxes and could serve in the army, but had no real political rights.
At the bottom were the helots: a slave class descended from those peoples who had resisted subjugation by Sparta. Because the helots were constantly rebelling, the Spartans attempted to control them by forming a secret society that annually murdered any helot suspected of encouraging subversion.
