ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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price ceiling
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excess demand
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equilibrium
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disequilibrium
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Detailed explanation-1: -A market-clearing price is the price of a good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price.
Detailed explanation-2: -An equilibrium price is a balance of demand and supply factors. There is a tendency for prices to return to this equilibrium unless some characteristics of demand or supply change. Changes in the equilibrium price occur when either demand or supply, or both, shift or move.
Detailed explanation-3: -Use the supply function for quantity. You use the supply formula, Qs = x + yP, to find the supply line algebraically or on a graph. Use the demand function for quantity. Set the two quantities equal in terms of price. Solve for the equilibrium price. 03-Mar-2023