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Why do price and quantity demanded move in the opposite direction?
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If the price is less than the equilibrium price what is the relatiionship of quantity supplied to quantity demanded?
If the price is low, suppliers may well not wish to supply the full quantity that is demanded by consumers.The quantity demanded and quantity supplied determines the equilibrium price in the market. The quantity where these two are equal, that is where the market price is set.
When is a price floor not binding?
the quantity of the good demanded with the price floor is less than the quantity demanded of the good without the price floor
When quantity demanded is greater than quantity supplied the price will?
the price increase
What is the price called at which the quantity demanded is equal to the quantity supplied?
equilibrium price
The quantity of a product that will be purchased at a given price is the?
quantity demanded
At equilibrium price the quantity is demanded always equal to the quantity supplied?
Yes, the equilibrium price equates the quantity supplied to the quantity demanded.
If the price is less than the equilibrium price what is the relatiionship of quantity supplied to quantity demanded?
If the price is low, suppliers may well not wish to supply the full quantity that is demanded by consumers.The quantity demanded and quantity supplied determines the equilibrium price in the market. The quantity where these two are equal, that is where the market price is set.
When is a price floor not binding?
the quantity of the good demanded with the price floor is less than the quantity demanded of the good without the price floor
When quantity demanded is greater than quantity supplied the price will?
the price increase
What is the price called at which the quantity demanded is equal to the quantity supplied?
equilibrium price
The quantity of a product that will be purchased at a given price is the?
quantity demanded
What do economists mean when they say that quantity demanded and price have an inverse relationship?
The law of demand states that when the price of a good or services falls, consumers buy more of it. As the price of a good or service increases, consumers usually buy less of it. In other words, quantity demanded and price have an inverse, or opposite, relationship.
Why price and quantity demanded are inversely related?
Price is inversely related to quantity demanded because as price rises, consumers substitute other goods whose price has not risen.
What is unique about an equilibrium price?
quantity demanded and quantity supplied are equal
How is price and quantity demanded related?
As a general rule, as the price level increases the quantity demanded will decrease, and vice versa. If the good or service is inelastic (e.g. a necessity or necessary to survival) a change in price will affect the quantity in a less than proportionate manner. That is, if there is a increase in price, the quantity demanded will increase only a small (if any) amount. If the good or service is elastic (e.g. luxury items) a change in price will affect quantity demanded more than proportionately. So if the the price increases, quantity demanded will decrease a large (more than proportionate) amount.
Determinants of quantity demanded?
Equilibrium is defined to the price-quantity pair where the quantity demanded is equal to the quantity supplied, represented by the intersection of the demand and supply curves.
What is market clearing price?
Market clearing price is the price at which the quantity demanded of a product equals the quantity supplied.
