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.
Hope dis helps :)
<span>
The </span>Egyptians invented<span> and used many simple machines, such as the ramp and the lever, to aid construction processes. They used rope trusses to stiffen the beam of ships. </span>Egyptian<span> paper, </span>made<span> from papyrus, and pottery </span>were<span> mass-</span>produced<span> and exported throughout the Mediterranean basin.</span>
True
Oregon is located on the west coast of America and is bordered by Washington to the North (therefore is south of Washington) and California to the south (therefore is north of California). Oregon is also located north of Nevada and west of Idaho.
Answer:
On February 4, 1913, Rosa Louise McCauley was born in Tuskegee, Alabama to parents James McCauley and Leona Edwards. ... There Rosa spent the rest of her childhood on her grandparents' farm. Her childhood in Montgomery helped her to develop strong roots in the African Methodist Episcopal Church.
Explanation:
sksksksksk done
<span>In order to take a more complete approach to achieving total quality, a company should take a approach of having zero defects in the manufacturing stage itself. The company is trying to minimize the defect level to 0 units by employing advance techniques of manufacturing. Also new designs are innovated in order to ensure that the quality is maintained.</span>
