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Which the following most accurately describes how the equilibrium prices of a good or service can be determined?
By finding where the supply curve and the demand curve intersect.
How does a price ceiling undermine the rationing function of market-determined prices?
A price ceiling will undermine the rationing function of market-determined prices by creating a shortage. This is a price which is below equilibrium which will lead to more demand that supply that will cause a shortage.
Why market prices are better than government determined prices?
Market prices tend to an equilibrium where buyers' demand for the good is worth less than the sellers' cost of supplying the good. Put another way, buyers are willing to pay less than the amount producers are willing to accept. Government sets its prices above or below this point. If the price is above the equilibrium buyers will demand less than producers supply. On the other hand, if price is below the equilibrium sellers will supply less than buyers demand.
An increase in supply reduces equilibrium price but increases equilibrium quantity a decrease in supply increases equilibrium prices but reduces equilibrium quantity. True or False?
True
What happens to prices set below market equilibrium?
There are a number of things that will happen to prices set below market equilibrium. They will cause a high demand and this will result in limited supply due to the low prices.
Which the following most accurately describes how the equilibrium prices of a good or service can be determined?
By finding where the supply curve and the demand curve intersect.
How does a price ceiling undermine the rationing function of market-determined prices?
A price ceiling will undermine the rationing function of market-determined prices by creating a shortage. This is a price which is below equilibrium which will lead to more demand that supply that will cause a shortage.
Why market prices are better than government determined prices?
Market prices tend to an equilibrium where buyers' demand for the good is worth less than the sellers' cost of supplying the good. Put another way, buyers are willing to pay less than the amount producers are willing to accept. Government sets its prices above or below this point. If the price is above the equilibrium buyers will demand less than producers supply. On the other hand, if price is below the equilibrium sellers will supply less than buyers demand.
An increase in supply reduces equilibrium price but increases equilibrium quantity a decrease in supply increases equilibrium prices but reduces equilibrium quantity. True or False?
True
What happens to prices set below market equilibrium?
There are a number of things that will happen to prices set below market equilibrium. They will cause a high demand and this will result in limited supply due to the low prices.
How is the equilibrium price related to the equilibrium quantity and how can these values be determined?
Demand: 300x+1500 Supply: 20x-q+1200?
How equilibrium of price level and real GDP is determined?
The answer is AJ Sanders
Why do prices move towards equilibrium in a free market?
Because if a business is profitable, competitors will spring up, thus clustering prices towards the equilibrium. Conversely, if it is not profitable, then prices will move toward the point at which it is, or the business will exit the market.
How do prices affect equilibrium?
Price changes affect the equilibrium price and quantity by Serving as a tool for distributing goods and services.
How was the equilibrium constant of a reaction determined?
The molarity of products is divided by the molarity of reactants
When equilibrium demanded is greater than quantity the market prices will what?
rise
How are stocks prices determined?
Supply and demand set stock prices.
