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When a surplus of a product will arise when price is above equilibrium or below equilibrium?
Wiki User
∙ 11y ago
above equilibrium
Wiki User
∙ 11y ago
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When does a price ceiling occur?
The ceiling price (maximum price) is set by the government. It is set below the equilibrium price (because if it were above, there will be a surplus and equilibrium will be stored due to market forces). It is illegal to sell any item above the maximum price. By setting a maximum price, a shortage is created - since quantity demanded is greater than quantity supplied. The purpose of maximum price is to ensure that the price of goods is affordable, especially for poorer families. Unfortunately, by setting a maximum price, there is a possibility that a black market will arise since there will be large numbers of unsatisfied and better-off customers who are willing to pay more than the government-set price. The floor price (minimum price) is another price control that the government uses. It is set above the equilibrium price. Because quantity demanded is less than quantity supplied, a surplus is created. These surplus goods are usually stockpiled by the Government. The purpose of a minimum price is to protect producers from receiving low prices for their produce.
Can you explain why there is no pressure for the equilibrium price to change?
The equilibrium price exists when at that price supply and demand for a product are equal. Apparently at that price level everybody is happy and as long as nothing changes there will be no pressure. If it would arise because of an increase in eithersupply or demand, the price would no longer be an equilibrium price and it would shift to another - higher or lower - level.
Consumer surplus arises in a market because?
Consumer surplus can arise in a market because of new technology. When a new phone comes out like the iPhone, older phones of this type might become obsolete. Consumer surplus arises in a market also because of higher prices.
What is the difference between GNI and GDP?
Gross National Income and Gross National Product are two side of a same coin but we measure the Gross National Product then exclude the export surplus is Known as Gross National Income. It means that a country produced and sold the final goods and service within the country. On other hand GNP is the total within or outside the country. Equation of GNP: C + (l,g) + G + (X-m) Equation of GNI: C + (L,G) + G C = Personal Consumption Expenditure l = Investment in Private sector g = Investment in Public sector G = Government subsidy (X-m) Net foreign Export surplus Note: if any misconcept arise then reply me with correction.
All economic questions arise because of what?
All economic questions arise because of SCARCITY OF RESOURCES.
When does a price ceiling occur?
The ceiling price (maximum price) is set by the government. It is set below the equilibrium price (because if it were above, there will be a surplus and equilibrium will be stored due to market forces). It is illegal to sell any item above the maximum price. By setting a maximum price, a shortage is created - since quantity demanded is greater than quantity supplied. The purpose of maximum price is to ensure that the price of goods is affordable, especially for poorer families. Unfortunately, by setting a maximum price, there is a possibility that a black market will arise since there will be large numbers of unsatisfied and better-off customers who are willing to pay more than the government-set price. The floor price (minimum price) is another price control that the government uses. It is set above the equilibrium price. Because quantity demanded is less than quantity supplied, a surplus is created. These surplus goods are usually stockpiled by the Government. The purpose of a minimum price is to protect producers from receiving low prices for their produce.
Can you explain why there is no pressure for the equilibrium price to change?
The equilibrium price exists when at that price supply and demand for a product are equal. Apparently at that price level everybody is happy and as long as nothing changes there will be no pressure. If it would arise because of an increase in eithersupply or demand, the price would no longer be an equilibrium price and it would shift to another - higher or lower - level.
Consumer surplus arises in a market because?
Consumer surplus can arise in a market because of new technology. When a new phone comes out like the iPhone, older phones of this type might become obsolete. Consumer surplus arises in a market also because of higher prices.
What are some songs about overcoming challenges?
Try the song Arise Above Oppression by Fear Factory. Try the song Arise Above Oppression by Fear Factory.
Which of the following traits will help you to maintain composure if a potential conflict were to arise?
All of the above
Advantages and disadvantages of beta testing?
@ Roll out a High Quality Product. @ Real time Validation of product @Save the Cost that could arise after product launch. @ Maintain Better Customer Relationship
Following traits will help you to maintain composure if a potential conflict were to arise?
All of the above (Apex)
What does the us navy do with surplus ships?
There are a variety of things that are done. Sometimes they are used for target practice. They may be mothballed, stored for future use if the need should arise. They may be sold to foreign governments. And the final option is to scrap them.
What is the future tense of arise?
Will arise (for example, I will arise).
What is the difference between GNI and GDP?
Gross National Income and Gross National Product are two side of a same coin but we measure the Gross National Product then exclude the export surplus is Known as Gross National Income. It means that a country produced and sold the final goods and service within the country. On other hand GNP is the total within or outside the country. Equation of GNP: C + (l,g) + G + (X-m) Equation of GNI: C + (L,G) + G C = Personal Consumption Expenditure l = Investment in Private sector g = Investment in Public sector G = Government subsidy (X-m) Net foreign Export surplus Note: if any misconcept arise then reply me with correction.
What are anagrams for arise?
The anagram for arise is raise.
What is the present tense of arise?
Arise/arises/arising.
