Some people consider the way the media covers candidates for public office bad for democracy due to the way they present the facts and evidence. e.g. Whenever Donald Trump was running for presidency they constantly reported on his sexual abuse accusations instead of his good deeds and samaritan actions. He helped in the recovery from the flood in Louisiana and sent food and shelter for the suffering families, but you never heard that on the news... They broadcast the information in a way that will attract the most viewers, not in a way that delivers the most factual and true information.
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.
The true statement here is C. The Universal Declaration of Human Rights lists human rights for everyone, universally. =)
Answer choices?
I'd gladly help, if I can!
