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:
god, glory, and gold
Explanation:
Europeans went to the new world for these three things mainly. First to spread God's word and convert the natives to Christianity which some found fulfilling. Two glory, people traveled to be the first and to come back as heroes. Third is the gold. Like most things in life people are in it for the wealth and riches. Europeans went to the new world because they were under the impression the would find lots of gold.
The action of the first flight in North Carolina
Answer:
Budget surplus
Explanation:
If a government spends less money than it brings in through taxes in one year then that government has a BUDGET SURPLUS.
The opposite version is known as BUDGET DEFICIT whereby the government spends more money than it brings in through taxes in one year.
Therefore, in this case, the correct answer to the question is "Budget surplus."
