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:was a well-known civil rights activist who had a great deal of influence on American society in the 1950s and 1960s. His strong belief in nonviolent protest helped set the tone of the movement. Boycotts, protests and marches were eventually effective, and much legislation was passed against racial discrimination.
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E service could be described as the public schooling. Public schooling provides an education to those who otherwise could not make it to or afford a private institution.
In New England, many of the local Indian tribes were at first receptive to the English colonizers, who desperately needed to the Indians to show them how to survive. These relationships were a bit more histile in the Chesapeake, which farming realities made the colonizers need far more land to operate.
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To help fix the problem or fight to end the problem
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