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: A
Explanation: The Townshend Acts were a series of acts passed in 1767 and 1768 that placed indirect taxes on imports British goods such as glass, lead, pants, paper, and tea. These acts were also met with protests from the colonies, and the British government had to send troops to enforce the taxes.
Answer:
These 3 things were all just a coincidental alliteration representing what the explorers wanted when searching for new land.
Explanation:
God, I suppose, would be to expand religion. Making others believe what the explorers believe.
Gold.. That's pretty self explanatory. Finding gold was probably #1 on their to-do list.
Glory would result in their expand in empires and gain power over the land.
Answer:
San Juan Teotihuacán
is a City in Mexico, northeast of Mexico City.
Answer:
The church administered the sacraments and could deny them as a punishment, it had absolute power in religious matters.