Question

Over time, the equilibrium price of a gigabyte of computer memory has fallen, while the equilibrium quantity purchased has increased. Based on this we can conclude that
a. increases in the demand for computer memory have exceeded increases in supply.
b. increases in the supply of computer memory have exceeded increases in demand.
c. decreases in the supply of computer memory have exceeded increases in demand.
d. decreases in the demand for computer memory have exceeded increases in supply.

Answer 1

Answer:

The correct answer is b. increases in the supply of computer memory have exceeded increases in demand.

Explanation:

The equilibrium price is that from which all bidders put their goods and services on the market and at which all the plaintiffs are willing to acquire them.

More simply, the equilibrium price is that in which the bidders (sellers) and the plaintiffs (buyers) agree.

The microeconomics poses a scenario where there are numerous suppliers whose offer of goods and services will be given by the price at which they believe it is profitable or sufficient to be present in the market, while there is also a certain number of plaintiffs that will increase or reduce their purchases depending on the price at which they are offered.