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a supply curve and a demand curve
A supply curve and a demand curve.
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What are needed to determine the equilibrium price of a good or service?
Consumers have inelastic demand
What is shown by the intersection of supply curve and the demand curve?
the equilibrium price of a good or service
How can one determine the consumer surplus at equilibrium in a market?
To determine the consumer surplus at equilibrium in a market, subtract the price that consumers are willing to pay from the actual market price. This calculation represents the benefit consumers receive from purchasing a good or service at a lower price than they are willing to pay.
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.
A shortage will develop when?
The market price is below the equilibrium price.
What are needed to determine the equilibrium price of a good or service?
Consumers have inelastic demand
What is shown by the intersection of supply curve and the demand curve?
the equilibrium price of a good or service
How can one determine the consumer surplus at equilibrium in a market?
To determine the consumer surplus at equilibrium in a market, subtract the price that consumers are willing to pay from the actual market price. This calculation represents the benefit consumers receive from purchasing a good or service at a lower price than they are willing to pay.
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.
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.
A shortage will develop when?
The market price is below the equilibrium price.
Why is an equilibrium price important?
It is how sellers determine the best possible price for their products for optimal profit.
What is the intersection of the supply curve and the demand curve?
the equilibrium price of a good or service
What is shown by the intersection of the supply 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.
