Figure 1.58 shows supply and demand for a product. (a) What is the equilibrium price for
Chapter 1, Problem 28(choose chapter or problem)
Figure 1.58 shows supply and demand for a product. (a) What is the equilibrium price for this product? At this price, what quantity is produced? (b) Choose a price above the equilibrium pricefor example, p = 12. At this price, how many items are suppliers willing to produce? How many items do consumers want to buy? Use your answers to these questions to explain why, if prices are above the equilibrium price, the market tends to push prices lower (toward the equilibrium). (c) Now choose a price below the equilibrium price for example, p = 8. At this price, how many items are suppliers willing to produce? How many items do consumers want to buy? Use your answers to these questions to explain why, if prices are below the equilibrium price, the market tends to push prices higher (toward the equilibrium). 2
Unfortunately, we don't have that question answered yet. But you can get it answered in just 5 hours by Logging in or Becoming a subscriber.
Becoming a subscriber
Or look for another answer