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:
Answer 1: Because they needed money to pay their debts from the war
Answer 2: Taxes
Explanation:
Britain needed money to pay for its war debts. The King believed that they had the right to tax the colonies.
Duties means the binding or obligatory force of something that is morally or legally right; moral or legal obligation.
Answer: Easier life for us humans. Since the stage of "hunt and gather" has been replaced with sedntary cultures, now we dont have to do the things people did back then. Example hunt, move place to place to find food, walk, send mails or go directly to a person to talk to them. Now we have become lazy leting technology do the life things that people did back then without us needed to even get off of our feet to do them we can just do them directly from our homes throught the internet.
Explanation:
The open door policy was principles that was installed in 1899 and then the 1900s to Have a protection of equal or even trading among countries
