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What are needed to determine the equilibrium price of a good or service?
Wiki User
∙ 8y ago
Consumers have inelastic demand
Wiki User
∙ 8y ago
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What is needed to determine equilibrium price of a good or a service?
a supply curve and a demand curveA supply curve and a demand curve.
What is shown by the intersection of supply curve and the demand curve?
the equilibrium price of a good or service
Why is an equilibrium price important?
It is how sellers determine the best possible price for their products for optimal profit.
A shortage will develop when?
The market price is below the equilibrium price.
What price when demand is zero?
If demand is zero, then the equilibrium price is zero and it would be unwise to supply such a good or service.
What is needed to determine equilibrium price of a good or a service?
a supply curve and a demand curveA supply curve and a demand curve.
What is needed to determine the equilibrium price of a good or services?
a supply curve and a demand curveA supply curve and a demand curve.
What is shown by the intersection of supply curve and the demand curve?
the equilibrium price of a good or service
Why is an equilibrium price important?
It is how sellers determine the best possible price for their products for optimal profit.
A shortage will develop when?
The market price is below the equilibrium price.
What is shown by the intersection of the supply and the demand curve?
the equilibrium price of a good or service
What is the intersection of the supply curve and the demand curve?
the equilibrium price of a good or service
Define a market and identify and explain how various market forces would determine the price of a product or service?
If we bring together the supply and demand curves onto one diagram, we find that they intersect at only one price. This is the market or equilibrium price. Only at this price is the quantity demanded equally to the quantity supplied. The equilibrium or market price is arrived at by a gradual process. If trading takes place at prices other than the market price, there will be either a shortage or a surplus, which will cause the price to move until it settles at the equilibrium level.
What determines the price and quantity produced most goods?
Price and quantity produced of any given product and service is dependent on multiple economic, social and political factors. Assuming ceteris parabus (all else being equal) the quantity of supply and demand determine the equilibrium point, or price of a good or service.
What price when demand is zero?
If demand is zero, then the equilibrium price is zero and it would be unwise to supply such a good or service.
How to graph the demand and supply functions to determine the equilibrium price and quantity?
check out the related link. ===========================
Shown by the intersection of the supply curve and the demand curve?
the equilibrium price of a good or service
