ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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surpluses depress the number of goods supplied
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shortages and surpluses will have no effect on the market
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the government will not intervene in the market
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the quantity demanded is the same as the quantity supplied
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Detailed explanation-1: -The equilibrium price is the only price where the plans of consumers and the plans of producers agree-that is, where the amount consumers want to buy of the product, quantity demanded, is equal to the amount producers want to sell, quantity supplied. This common quantity is called the equilibrium quantity.
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: -Market equilibrium is a market state where the supply in the market is equal to the demand in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market.
Detailed explanation-4: -The equilibrium price and quantity are where the two curves intersect. The equilibrium point shows the price point where the quantity that the producers are willing to supply equals the quantity that the consumers are willing to purchase. This is the market equilibrium quantity to supply.
Detailed explanation-5: -At equilibrium, the quantity demanded is equal to the quantity supplied, meaning the demand is equal to supply at equilibrium.