ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the supply by sellers meets the demand from buyers
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sellers have provided more goods than the demand from buyers
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the demand by buyers is rapidly growing.
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sellers have provided enough goods for buyers’ demand, but at prices that are too high.
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Detailed explanation-1: -A market clearing price is a price at which the quantity supplied matches the quantity demanded. At this price, every seller who is willing to sell at or below the market-clearing price can do so, and every buyer who is willing to buy at or above the market-clearing price can do so as well.
Detailed explanation-2: -The market-clearing price is the price at which the quantity supplied equals the quantity demanded. This price is the only one that balances, or “clears, ” the market. Market competition tends to move prices toward market-clearing levels.
Detailed explanation-3: -1. The increase in demand causes excess demand to develop at the initial price. a. Excess demand will cause the price to rise, and as price rises producers are willing to sell more, thereby increasing output.
Detailed explanation-4: -Market Equilibrium: Where Supply Meets Demand This means that there’s no surplus and no shortage of goods. A shortage occurs when demand exceeds supply – in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product.