ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the price of milk does not change much from week to week
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milk production makes good profit for manufacturers
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everyone who wants milk can afford it
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the milk made equals the milk sold
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Detailed explanation-1: -The corresponding quantity at Point E will be the equilibrium quantity of milk, and the corresponding price at Point E will be the equilibrium price of the milk. Thus, at the point of equilibrium E, the equilibrium price is $6 per gallon and the quantity is 300 gallons per month.
Detailed explanation-2: -A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease. An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
Detailed explanation-3: -The equilibrium price is where the supply of goods matches demand. When a major index experiences a period of consolidation or sideways momentum, it can be said that the forces of supply and demand are relatively equal and the market is in a state of equilibrium.
Detailed explanation-4: -Equilibrium state is a state at which the quantity supplied is equal to the quantity demanded. Hence, neither buyers nor sellers want to change their behaviour. They are exact same. Hence, in economics, equilibrium is a situation in which there is no inherent tendency to change.