The graph shows excess demand. A graph titled Excess supply has quantity on the x-axis and price on the y-axis. A line with posi
tive slope represents supply and a line with negative slope represents demand. The lines intersect at the point of equilibrium (p star, Q star). A point on the demand line is (P 2, quantity demanded) and a point on the supply line is (P 2, quantity supplied). Both points are lower than the point of equilibrium. Excess demand is indicated between the 2 points. Which needs to happen in order to stop disequilibrium from occurring? Q needs to be coordinated with supply. Q needs to be coordinated with demand. The price of goods needs to be increased. The price of goods needs to be decreased.
2 answers:
Answer:the firm should increase price
Explanation:
From the question there is a shortage i.e Demand is greater than Supply, the firm should increase the price of the product which would induce suppliers to increase their supply.
The increase in price would lead to a movement along the demand curve with would in turn correct the disequilibrium.
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<u>Solution and Explanation:</u>
<u>Computation of service years </u>
Year Jim Paul Nancy Dave Kathy Total * Cost Amortization
2014 1 1 1 1 1 5 * 3000 15000
2015 1 1 1 1 1 5 * 3000 15000
2016 1 1 1 1 1 5 * 3000 15000
2017 1 1 1 1 4 * 3000 12000
2018 1 1 1 3 * 3000 9000
2019 1 1 2 * 3000 6000
72000
<u>Future years of service </u>
Jim 3
Paul 4
Nancy 5
Dave 6
Kathy 6
24