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Market forces push toward equilibrium
Most economists see the assumption of continuous market clearing as not very realistic. However, many see the assumption of flexible prices as useful in long-run analysis, since prices are not stuck forever
The price goes up if the demand is high
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.
The prices went up and some people started to worry that these prices were too high
Market forces push toward equilibrium
The market clearing model is a model where prices adjust to equilibrating demand and supply meaning the quantity supply equals the quantity demanded. These models are useful for studying situations where prices are flexible.
Prices increase because things have been destroyed and there are not as many of them as before on the market.
Most economists see the assumption of continuous market clearing as not very realistic. However, many see the assumption of flexible prices as useful in long-run analysis, since prices are not stuck forever
The price goes up if the demand is high
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.
One could be by Rent Control and another of Price Ceiling
The prices went up and some people started to worry that these prices were too high
The market clearing model is a model where prices adjust to equilibrating demand and supply meaning the quantity supply equals the quantity demanded. These models are useful for studying situations where prices are flexible.
The market clearing model is a model where prices adjust to equilibrating demand and supply meaning the quantity supply equals the quantity demanded. These models are useful for studying situations where prices are flexible.
changes in relative prices are the driving force in the market mechanism
Prices tend to go up as demand has increased.