1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nikklg [1K]
3 years ago
11

Explain how a price system moves a market toward the quilibrium price

Business
1 answer:
lions [1.4K]3 years ago
8 0

Answer:

By setting the price of goods and services at a level where the suppliers and consumers feel comfortable, the quantity of goods and services supplied will be the same as the quantity of goods demanded.

Explanation:

A price system is a means of arranging economic activities by setting the standard prices of goods and services in that particular economy. In this way the agents of demand and supply can have an estimate of the price of various goods and services. In this way, a supplier who doesn't know the price of a goods or service that he/she plans to sell to a different country or region can use the price system to adjust their selling price effectively. On the same note, the consumers can also acquire goods and services that they have never demanded before by using the price system to determine the standard prices for those goods or services.  

Prices are a reflection of the consensus between suppliers and consumers about the value of goods and services. The equilibrium price can be defined as the price where the quantity of goods supplied equals the quantity demanded. By setting the price of goods and services at a level where the suppliers and consumers feel comfortable, the quantity of goods and services supplied will be the same as the quantity of goods demanded.

You might be interested in
In regard to the stages (or rounds) of venture capital funding, the stage of funding that occurs when an investment is made very
NemiM [27]

Answer:  seed capital    

                       

Explanation: In simple words, seed capital refers to the funding under which a venture capitalist invests in a project that involves introducing a completely new product or service.

Usually the projects that involves funding of seed capital have no physical existence or assets. These projects are just in from of idea and the venture capitalist feels that it can be a success so he invest in it. Generally, under such projects venture capitalist takes majority of capital in his hold for fully enjoying the potential benefit.

 

3 0
3 years ago
Inventory records for Marvin Company revealed the following:
lbvjy [14]

Answer:

Ending inventory= $5,592.45

Explanation:

Giving the following information:

Mar. 1: Beginning inventory= 1,090 units at $7.25

Mar. 10: Purchase: 510 units at $7.75

Mar. 16: Purchase: 397 units at $8.35

Mar. 23: Purchase: 510 units at $9.05

First, we need to calculate the number of units in ending inventory:

Ending inventory in units= total units - units sold

Ending inventory in units= 2,507 - 1,880= 627

Under FIFO (first-in, first-out), the ending inventory is composed of the cost of the last units bought.

Ending inventory= 510*9.05 + 117*8.35= $5,592.45

6 0
3 years ago
Which of the following trade barriers is an example of a tariff?A. The U.S. federal government bans all foreign-produced beef fr
kap26 [50]

Answer:

B. The U.S. federal government places a tax on all tires imported to the United States

Explanation:

A tariff's definition is "a tax or duty to be paid on a particular class of imports or exports" which fits question B perfectly.

8 0
3 years ago
Lark had net income for 2018 of $105,000. Lark has 33,000 shares of common stock outstanding at the beginning of the year and 48
valina [46]

Answer:

Price Earnings Ratio = 20.48

Explanation:

Price Earnings Ratio = Price/Earnings per share

Here Price is of common stock

In the given case = $32

Earnings per share are calculated at year end for common stock.

Earnings for common stock = Net income - Dividend to preference shares = $105,000 - $30,000 = $75,000

Earnings per share = $75,000/48,000 shares = $1.5625

Price Earnings Ratio = \frac{32}{1.5625} = 20.48

Note: There is no relevance of share price of preference shares, also no relevance on opening number of shares of equity as PE Ratio is calculated on closing number of shares and on the date and not for the period that we will consider the average.

Price Earnings Ratio = 20.48

8 0
3 years ago
Suppose the market for hamburgers is unregulated. that is, hamburger prices are free to adjust based on the forces of supply and
vredina [299]

Answer: Lower

Explanation: A shortage occurs when there are less available in the market. When the current price is less than the equilibrium price, the demand for the good is greater than the supply for the good. When demand is more than supply, the buyers are unable to get the goods they want. Thus, there is a shortage in the market.  

Thus, if a shortage exists in the hamburger market, then the current price must be <em>lower </em>than the equilibrium price.  

3 0
3 years ago
Other questions:
  • Why can most people in Hospitality and Tourism careers succeed with a secondary education as their highest level of education?
    11·1 answer
  • Easy 25 points!!! Yes or no! Just add a short explanation!
    12·1 answer
  • If congress increases the minimum wage to $7.25 per hour, what happens to the demand for consumer goods as a result?
    15·2 answers
  • Which of the following statements is true a. ​in market equilibrium there are unconsummated value-creating transactions b. ​in m
    8·2 answers
  • Smith Corporation makes and sells a single product called a Pod. Each Pod requires 3.0 direct labor-hours at $11.20 per direct l
    11·1 answer
  • Skysong Industries acquired two copyrights during 2020. One copyright related to a textbook that was developed internally at a c
    12·1 answer
  • Elway Company purchases land for $85,000 cash. Elway assumes $2,500 in property taxes due on the land. The title and attorney fe
    7·1 answer
  • Joining a Meetup group in your area allows you to
    12·1 answer
  • A ____ consist of the actions a person is expected to perform in a group.
    9·1 answer
  • Which one of the following is NOT included in the Marketing Mix?
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!