Question

How do price changes affect equilibrium?

Answer 1

Answer:

by serving as a tool for distributing goods and services.

Explanation:

There is an inverse relationship between the supply and prices of goods and services when demand is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services.

Answer 2

The price changes affect equilibrium by serving as a tool for distributing goods and services.

Answer: Option 3

Explanation:

Equilibrium is when there is a formulated balance between the supply of goods and the demand for goods. When there is an equilibrium in the market, it is observed that the prices of the goods remain stable.

On the other hand, it also favours the goods and services distribution. This is solely because the demand for the goods is met by the optimum supply of goods in demand.