0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Market clearing price?
The price that exists when a market is clear of shortage and surplus, or is in equilibrium.
What happens When the government intervenes in the market by imposing price ceilings and price floors?
Shortages, Surplus and Unintended consequences.
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
What is customer surplus and producer surplus?
Consumer surplus is the difference between the maximum amount a person is willing to pay for a good and its current market price. Producer surplus is the difference between the current market price and the full cost of production for the firm.
What happens to prices when there is a surplus?
the price goes down
1 What can be said about the market price when a good is in surplus?
In a surplus, the market price will be lower. Since there are many options for consumers, they will want to pay the lowest price.
Market clearing price?
The price that exists when a market is clear of shortage and surplus, or is in equilibrium.
What happens When the government intervenes in the market by imposing price ceilings and price floors?
Shortages, Surplus and Unintended consequences.
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
What is customer surplus and producer surplus?
Consumer surplus is the difference between the maximum amount a person is willing to pay for a good and its current market price. Producer surplus is the difference between the current market price and the full cost of production for the firm.
What happens to prices when there is a surplus?
the price goes down
How does price ceiling affect total surplus in perfect competitive market?
Sperm in the market flow
What will happen to the price of oil when there is a surplus in the oil market?
It will go down!~
A government-set price ceiling will lower equilibrium price and quantity in a market?
A surplus of goods occur
What happens to consumer surplus if the price is above equilibrium?
When the price is above equilibrium, there is a surplus because supply is greater than demand. The price of the good will naturally decrease back to its equilibrium price where demand and suppy interesect, thus eliminating the surplus.
What happens to price when a surplus exists?
Surplus means there will be excess supply, meaning demand will fall, and so will prices
What is the impact of a price floor on a market?
If the price floor is above market equilibrium then companies are forced to sell at that price. This means the market's quantity supplied and quantity demanded will not equal each other, resulting in a surplus.
