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:
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Answer:
Cotton could be processed much faster, leading to an increase in demand for slave labor.
Explanation:
Henry David Thoreau opposed the Mexican War, so you could consider him an opponent of Manifest Destiny. Manifest Destiny was an overarching idea or concept, but it's practical application took place in many different events and contexts.
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During 1500 - 1800 Muslim controls of North Africa placed a type of obstacle to European exploration of interior of Africa from north. So the Dutch were the starters to en-route in direction to interior including South Africa as a part of developing routes to trade with Asia
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~LYNA~
