Pennsylvania passed the first antislavery law
Emergency social welfare department increase European meetingsummit
Both women are successful CEOs of major companies.
Both Sargon and Hammurabi were leaders of the Mesopotamia. According to legend, the mother of Sargon abandoned him in a basket in a river; as a man he worked in Kish, a Sumerian city-state, which he took over and later created an empire which he ruled for over fifty years. Similarly to Sargon´s accomplishments, Hammurabi also took over an important city, Larsa; he later took the whole of Mesopotamia; he is best known for his creation of a Law Code.
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.
