The Mexican War

1 answer:

4 0

The correct answer is D, as the Mexican-American War changed the boundary with Mexico to go mostly along the Rio Grande and the Gila River with a few streches on land in mostly New Mexico and California.

The Treaty of Cahuenga, signed on January 13, 1847 in Los Angeles, ended the disputes in California. The Mexican government initiated peace negotiations with the United States that culminated in the signing of the Treaty of Guadalupe Hidalgo, signed on February 2, 1848. The treaty granted the United States control over Texas, the disputed territory between Mexico and Texas that included all the land north of the Rio Grande and the territories known as Alta California and Santa Fe of New Mexico, including what now are the States of Arizona, California, Nevada, Utah, New Mexico and parts of Colorado, Wyoming, Kansas and Oklahoma (what is known as Mexican Cession).

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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.

However, none of the alternatives would explain why a price is charged above the equilibrium price. The answer is the reverse of what is written in alternative (A). The truth is this: As the quantity demanded rises, the price rises above the equilibrium price. This is the answer.

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.

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