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.
Nope Apollo did not teach people how to play instruments
Answer: b. James A. Garfield.
Explanation: From to 1851 to 1854 he studied at the Western Reserve Eclectic Institute [later named Hiram College] in Hiram, Ohio. He then moved to Williams University in Williamstown, Massachusetts, where he was a member of the Delta Epsilon brotherhood. He graduated in 1856 as an exceptional student who excelled in all subjects except chemistry. He later taught classical languages at the Eclectic Institute during the academic year 1856-1857 and was appointed director of the institute from 1857 until 1860. Garfield decided that academic life was not for him and he studied law on his own. He was admitted to the Ohio Bar in 1860. As an anecdote, it should be noted that he was an amateur mathematician and published an original proof of the Pythagorean Theorem [New England Journal of Education]
Answer:
The World Bank last year deemed South Africa the world's most unequal society. The source of the inequality that plagues South Africa is multifaceted. Unemployment, poor education programs and a collapsing public health system all play a role.
True
Answer:
Paper and ink, cosmetics, the toothbrush and toothpaste, even the ancestor of the modern breath mint, were all invented by the Egyptians.
Explanation: