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What is the price at which consumers will purchase the same quantity of a product that suppliers will produce?
Wiki User
∙ 8y ago
The equilibrium price is the price at which consumers will purchase the same quantity of a product that suppliers will produce.
Wiki User
∙ 8y ago
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If the price of a product is above the equilibrium price what is the result?
suppliers produce more than consumers want to purchase and the suppliers end up with surpluses.
What is the Aggregate supply curve and its axis?
The aggregate supply curve show the relationship between price level and the quantity of goods and services that producers are willing to produce when their goods are at a certain price. On the x-axis is RGDP (representing quantity of goods that suppliers are willing to produce in terms of the value of the products adjusted for inflation). On the Y-axis is price level.
How is production allocated under capitalism?
Production will be allocated to those with available resources and a willingness to purchase the output of production. These purchases then become information for suppliers in determining what and how much to produce in the future.
Do suppliers tend to produce less or more when the price goes up?
they tend to produce less because there are less demands for that product
Why is it important for the supplier of goods and service to have information about price elasticity of demand?
In that way the supplier of goods and services, will be able to know how many goods they must produce for the quantity demanded in the economy. They need to know how much price affects the consumers.
If the price of a product is above the equilibrium price what is the result?
suppliers produce more than consumers want to purchase and the suppliers end up with surpluses.
Why does the supply line slope and to the right?
Because, as the price increases, suppliers are prepared to produce more units. Because, as the price increases, suppliers are prepared to produce more units. Because, as the price increases, suppliers are prepared to produce more units. Because, as the price increases, suppliers are prepared to produce more units.
Which country produce large quantity of Sternum?
The Western countries produce the large quantity of Sternum.
What is the Aggregate supply curve and its axis?
The aggregate supply curve show the relationship between price level and the quantity of goods and services that producers are willing to produce when their goods are at a certain price. On the x-axis is RGDP (representing quantity of goods that suppliers are willing to produce in terms of the value of the products adjusted for inflation). On the Y-axis is price level.
What is the meaning of by quantity?
Start with one object which is a quantity of one but if you have ten of those objects then you have a quantity of ten. For instance, if you buy by quantity you may purchase a case of a canned food rather than a can or two. If you buy produce, such as tomatoes by quantity, you may buy a box rather than one tomato or a small pack.
Marketing starts along before a product is produce?
Before a product is produce a marketing research is conducted to identify what consumers are actually looking for, at what price they are willing to purchase such a product and the demand of the product on the market,
How does consumers purchases influence the decisions of producers?
If consumers didn't buy a producer's products, the producer would soon go out of business.
How is production allocated under capitalism?
Production will be allocated to those with available resources and a willingness to purchase the output of production. These purchases then become information for suppliers in determining what and how much to produce in the future.
What good and services will produce and how will the produce?
The basic economic theory states that "When there is demand efforts will be made to satisfy this demand by virtue of supply." Now in an economic system the consumer dictates the demand and so the supply has to satisfy the demand.So the suppliers have to model their products and services which corresponds to demands of the consumers.
How is production important in the provision of goods and services to consumers?
Production of goods is important for services and companies because companies must produce in mass what goods or services consumers will purchase. If customers do not wish to purchase a certain good or service, then it could cost a company mass amounts of money if they have produced it.
Are salamanders consumers?
Salamanders technically are considered to be consumers. Salamanders are considered to be consumers because they do not produce their food.
Why do you save electricity?
In this context, to save electricity is "not to use it" rather than to "save it somewhere safe". The primary reason for consumers is that by not using electricity, you will not have to pay for it. The secondary reason is that if we, as consumers, use less electricity then the suppliers will not have to produce so much either which, in turn, means that less greenhouse gases will be produced at electricity generating stations.
