ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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demand exceeds supply and a higher price can be charged
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the shopper to store ratio is 100:1
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the price is met at which supply equals demand
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primary and secondary activities number the same as tertiary activities
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Detailed explanation-1: -A market is in equilibrium if at the market price the quantity demanded is equal to the quantity supplied. The price at which the quantity demanded is equal to the quantity supplied is called the equilibrium price or market clearing price, and the corresponding quantity is the equilibrium quantity.
Detailed explanation-2: -Equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable. Generally, an over-supply of goods or services causes prices to go down, which results in higher demand-while an under-supply or shortage causes prices to go up resulting in less demand.
Detailed explanation-3: -Which of the following best refers to the market equilibrium price? Surpluses depress the number of goods supplied.
Detailed explanation-4: -If the price of a good is above equilibrium, this means that the quantity of the good supplied exceeds the quantity of the good demanded. There is a surplus of the good on the market.
Detailed explanation-5: -The answer is d). In a market equilibrium, the quantity demanded is equal to the quantity supplied, hence there is no excess demand or excess supply.