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Equilibrium is defined to the price-quantity pair where the quantity demanded is equal to the quantity supplied, represented by the intersection of the demand and supply curves.
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What is the explanation of determinants of demand?
law of demand: the higher the price the lower the demand for the product and vise versa
Definition of determinants of supply?
Assuming the market is perfectly competitive and there are no government imposed restriction, the quantity supplied will equal the quantity demanded, meaning the quantity demanded by buyers equals the quantity supplied by sellers.
And quantity demanded is shown on?
And quantity demanded is shown on?
What is an increase in quantity demanded?
what in is an increase in quantity demanded
When quantity supplied is more than quantity demanded its called?
A quantity supplied is more than quantity demanded its called A Surplus.
What is the explanation of determinants of demand?
law of demand: the higher the price the lower the demand for the product and vise versa
Definition of determinants of supply?
Assuming the market is perfectly competitive and there are no government imposed restriction, the quantity supplied will equal the quantity demanded, meaning the quantity demanded by buyers equals the quantity supplied by sellers.
And quantity demanded is shown on?
And quantity demanded is shown on?
What is an increase in quantity demanded?
what in is an increase in quantity demanded
When quantity supplied is more than quantity demanded its called?
A quantity supplied is more than quantity demanded its called A Surplus.
At equilibrium price the quantity is demanded always equal to the quantity supplied?
Yes, the equilibrium price equates the quantity supplied to the quantity demanded.
When quantity supplied exceeds quantity demanded there is?
surplus
What are demand determinants?
Factors that also determine the quantity demanded.QdxPxPyITN
The quantity of a product that will be purchased at a given price is the?
quantity demanded
When quantity supplied and quantity demanded are equal the market is in?
Equilibrium.
If the price is less than the equilibrium price what is the relatiionship of quantity supplied to quantity demanded?
If the price is low, suppliers may well not wish to supply the full quantity that is demanded by consumers.The quantity demanded and quantity supplied determines the equilibrium price in the market. The quantity where these two are equal, that is where the market price is set.
How is the equilibrium between price and quantity established?
In both micro and macroeconomics, the equilibrium level of price and quantity are determined by looking at the supply and demand curves (aggregate demand and aggregate supply curves in the case of macroeconomics). The supply and demand curves' steepness and position are established by specific determinants (there are both determinants of supply and determinants of demand). However, these two graphs don't immediately tell you the quantity and price of a good, or aggregate goods in an aggregate market. By looking at the intersection of these two graphs, you can establish the price and quantity. Drawing a vertical line from the intersection, you will arrive at the quantity that is demanded and should be supplied (equilibrium quantity). And drawing a horizontal line from the intersection will give you the price the supplier should charge and what people are willing to pay (equilibrium price).
