The intersection between the supply curve (an upward sloping function) and the demand curve (a downwardsloping function) determines the equilibrium point of a market. The equilibrium is the point which represents the exact market price and quantity demanded/supplied at which the wishes of consumers and suppliers meet.
<u>When the market is not in the equilibrium point</u>, two different situations could be happening:
- Excess demand: this is a situation in which the market price is located below the equilibrium price. The quantity demanded at that market price would exceed the amount that the producers are willing to produce and supply at that same price. Therefore, not all consumers are able to obtain the product they desire and there is rationing.
- Excess supply: at a certain price located above the equilibrium, the quantity that suppliers are willing to produce exceeds the amount demanded by consumers at that more expensive price. Therefore, suppliers would not be able to sell their whole production in the market.
Although the two economic systems are based on the law of supply and demand, these systems are different. Capitalism is an economic system based on ownership of the factors of production. ... On the other hand, a private owner in a capitalist system can have a monopoly on the market and prevent free competition.
Military Governor of Tennessee
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<span>Other countries wouldn't allow them and they didn't have access to needed materials</span>
He declared war because the American "Infidels" invaded the Holy Land. He meant that because of the American occupation of Iraq and because it also occupied surrounding areas. So that's why he believed that he was in a "Holy" war to get the Holy Land back.
