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When a surplus of a product will arise when price is above equilibrium or below equilibrium?
above equilibrium
What is minimum price legislation?
The minimum price legislation is the commodity sold at any price price below the one stated example government or authorities. The intention is to protect the supplier at times when the market id at equilibrium and price tends to fall (due surplus). To be effective, a minimum price must be set above prevailing current market equilibrium price. Also there should be no cheating.
Why price ceiling and price floor is binding?
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
How can one calculate producer surplus at equilibrium?
To calculate producer surplus at equilibrium, subtract the minimum price that producers are willing to accept from the market price. This will give you the area above the supply curve and below the market price, representing the producer surplus.
What is the difference between equilibrium and disequilibrium price?
Equilibrium is when supply and demand is balanced or equivalent, whereas disequilibrium doesn't attain equilibrium which is either above or below equilibrium.
When a surplus of a product will arise when price is above equilibrium or below equilibrium?
above equilibrium
What is minimum price legislation?
The minimum price legislation is the commodity sold at any price price below the one stated example government or authorities. The intention is to protect the supplier at times when the market id at equilibrium and price tends to fall (due surplus). To be effective, a minimum price must be set above prevailing current market equilibrium price. Also there should be no cheating.
Why price ceiling and price floor is binding?
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
How can one calculate producer surplus at equilibrium?
To calculate producer surplus at equilibrium, subtract the minimum price that producers are willing to accept from the market price. This will give you the area above the supply curve and below the market price, representing the producer surplus.
What is the difference between equilibrium and disequilibrium price?
Equilibrium is when supply and demand is balanced or equivalent, whereas disequilibrium doesn't attain equilibrium which is either above or below equilibrium.
Why the introduction of a minimum price below the equilibrium price reduces social welfare?
If the prices are set below the level of equilibrium, the quantity supplied will be less than the quantity demanded. Introduction of minimum prices will lead to hoarding of goods, thus social welfare falls.
How might a law setting minimum wage below the equilibrium point have an unintended effect?
A law setting the minimum wage below the equilibrium point might have an unintended effect that could lead to unemployment. It also prevents poor families being able to better their conditions and thus increases poverty.
Where is the consumer surplus located on a graph depicting market equilibrium?
Consumer surplus is located above the market price and below the demand curve on a graph depicting market equilibrium.
The maximum displacement of a particle within a wave above or below it's blank position is called amplitude?
equilibrium amplitude
What is the maximum displacement of a particle within a wave above or below its equalibreum position?
The maximum displacement of a particle within a wave above or below its equilibrium position is called the "amplitude" of the wave. It represents the maximum distance the particle moves away from its equilibrium position in either direction as the wave passes through.
How can one determine producer surplus at equilibrium?
To determine producer surplus at equilibrium, calculate the area above the supply curve and below the equilibrium price. This represents the difference between the price producers are willing to accept and the price they actually receive, indicating their surplus.
What is the lowest point on a wave is called?
The lowest point on a wave is called the trough. It is where the displacement of the wave is at its minimum value below the equilibrium position.
