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Injections = Leakages (J=W)

Iu=0 (unplanned investment = 0)

one more condition

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12y ago

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What is a market pull product?

A market pull product is basically a product the serves a purpose for other products.


What is meant by market failure?

There are two similar but significantly different definitions of "market failure":A situation where the motivations of market-actors prevent the market from reaching maximally efficient equilibrium over timeA situation in which allocation of goods and services by a free market is currently not maximally efficient at a given time.The first definition is the more meaningful definition in relation to government policy.An often seen incorrect definition of market failure is when the quantity of a product demanded by consumers is not equal to the quantity supplied by suppliers. That is instead called a shortage or surplus.


As long as a manufacturer does not try to control the market for a product it is okay for the manufacturer to design market and sell a product?

Yes. As long as a manufacturer does not try to control the market for a product it is okay for the manufacturer to design market and sell a product.


What is differentiated market?

where there is one specific product in the market. It includes only one product


What situation can lead to excess demand?

Scarcity of the product, or if the price of the product has dropped. JohnnyChampagne's answer: When quantity demanded is more than quantity supplied. When the actual price in a market is below the equilibrium price, you have excess demand, because a low price encourages buyers and discourages sellers.

Related Questions

Example of market equilibrium?

Market equilibrium is when the demand of the product and the supply of the product is equal. If either demand or supply changes, then the equilibrium adjusts.


What happens when the market price is lower than the equilibrium price?

When the market price is lower than the equilibrium price the price of the product will continue to rise. The price will rise until it equal the equilibrium price.


What happens when the equilibrium price is lower than the market price?

When the market price is lower than the equilibrium price the price of the product will continue to rise. The price will rise until it equal the equilibrium price.


How to find the equilibrium quantity in a market?

To find the equilibrium quantity in a market, you need to identify the point where the quantity demanded by consumers equals the quantity supplied by producers. This is where the market reaches a balance, or equilibrium. The equilibrium quantity can be determined by analyzing the demand and supply curves for the product or service in question.


If the demand curve shifts to the right, how does this impact the market equilibrium"?

When the demand curve shifts to the right, it indicates an increase in demand for the product. This leads to a higher equilibrium price and quantity in the market.


What is Market equilibrium?

Market equilibrium is this situation when market demand is equal of market supply


Why does the time it takes to reach equilibrium vary from market to market?

It takes time to reach the equilibrium because they don't know what is the "right price" to sell the product. whether prices change quickly or slowly however once they move toward equilibrium shortages and surpluses start to disappear.


Why will market equilibrium be re-established once disturbed?

It was found experimentally that Market has to re-establish Equilibrium via Market mechanism. Such that Market equilibrium is a desired status in the market where both suppliers and Consumers will tend re-establish market equilibrium (through demand & Supply) undeliberately.


Equilibrium and economies scale in market economy?

Equilibrium and economies scale in market economy


What happens to equilibrium when the supply of and demand for a product decrease simultaneously?

When the supply and demand for a product decrease at the same time, the equilibrium price and quantity will both decrease. This is because there is less of the product available and fewer people wanting to buy it, leading to a lower market price and quantity traded.


What does it mean if the demand curve shifts to the right and how does it impact the market equilibrium"?

When the demand curve shifts to the right, it means that consumers are willing to buy more of a product at each price level. This increase in demand leads to a higher equilibrium price and quantity in the market.


What is static equilibrium in economics an show it graphically?

Static equilibrium in economics refers to a situation where the demand for a product equals its supply in a given market at a particular point in time, resulting in no incentive for price changes. Graphically, static equilibrium is shown at the point where the demand curve intersects the supply curve, indicating a stable market price and quantity.