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:
blazing heat and bitter cold
Answer:
As Anne Frank hides along with her family and others in the secret annex during the Holocaust, she shows great courage. ... During an air raid in July of 1943, Anne feels so frightened that she clutches an escape bag as her house shakes, but she knows she can't leave.
Explanation:
Well the <span> main </span>reason<span> that the </span>League<span> of </span>Nations failed<span>, was that the countries only thought for themselves. The absence of the U.S. was a large factor in the failure of the </span>League<span> of </span>Nations<span>, but the root cause of the failure of the </span>League<span> was that it had no real power.</span>
Answer:
pitiful
Explanation:
Pitiful is the meaning of pathetic in this sentence because the cat is fully soaked in the rain which is a pitiful scenery. It make Natalee very emotional and sad. There are some people who can't see animals in difficulty and when they see it, they become emotional and sad. There are also some more meanings of the word pathetic such as moving and touching etc.
