ENTREPRENEURSHIP AND THE GLOBAL ECONOMY
GLOBALIZATION AND ENTREPRENEURSHIP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
The equilibrium price is
|
|
the price set by the government
|
|
|
the price at which supply equals demand
|
|
|
the price at which exports equal imports
|
|
|
the price set by the foreign exchange rate
|
Explanation:
Detailed explanation-1: -Equilibrium price. When a product exchange occurs, the agreed upon price is called an equilibrium price, or a market clearing price. Graphically, this price occurs at the intersection of demand and supply as presented in Image 1. In Image 1, both buyers and sellers are willing to exchange the quantity Q at the price P.
Detailed explanation-2: -Economic equilibrium refers broadly to any state in the economy where forces are balanced. This can be related to prices in a market where supply is equal to demand, but can also represent the level of employment, interest rates, and so on.
Detailed explanation-3: -Equilibrium price is the price at which the quantity demanded and the quantity supplied is the same.
There is 1 question to complete.