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When a surplus of a product will arise when price is above equilibrium or below equilibrium?
above equilibrium
What is natural rate of unemployment?
The natural rate of unemployment is the rate that holds over the long-run in equilibrium. In Classical economics, this rate is 0%. With other assumptions, such as frictional and structural unemployment, you will get a natural unemployment rate above 0%. Source: http://www.transtutors.com/homework-help/macro-economics/unemployment/full-employment/
How do unions affect the natural rate of unemployment?
Unions may affect the natural rate of unemployment via the effect on insiders and outsiders. Because unions raise the wage above the equilibrium level, the quantity of labor demanded declines while the quantity supplied of labor rises, so there is unemployment.
What is the highest point above the equilibrium position called?
The highest point above the equilibrium position is called the amplitude. It represents the maximum displacement from the equilibrium position in either direction.
Why price ceiling and price floor is binding?
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
What is the difference between equilibrium and disequilibrium price?
Equilibrium is when supply and demand is balanced or equivalent, whereas disequilibrium doesn't attain equilibrium which is either above or below equilibrium.
What happens to consumer surplus if the price is above equilibrium?
When the price is above equilibrium, there is a surplus because supply is greater than demand. The price of the good will naturally decrease back to its equilibrium price where demand and suppy interesect, thus eliminating the surplus.
What is the gas pressure above a liquid at equilibrium called?
The gas pressure above a liquid at equilibrium is called the vapor pressure. This is the pressure at which the rate of evaporation equals the rate of condensation, leading to a dynamic equilibrium between the liquid and its vapor.
Is Florida extending weeks above the six months of unemployment?
No
What happens when wages are set above the equilibrium level by law?
Firms employ fewer workers than they would at the equilibrium wage.
When market price is above equilibrium price?
When supply and demand are balanced
If the minimum wage is set above the market wage the?
Unemployment will rise.
