This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Describe the market process that should occur if the price of a product is below its equilibrium ... (Read 72 times)

jace

  • Hero Member
  • *****
  • Posts: 541
on: Jun 29, 2018
Describe the market process that should occur if the price of a product is below its equilibrium price; now describe what would occur if the price is above its equilibrium price, assuming no market interference.
 
  What will be an ideal response?

Question 2

Ultimately, the real burden of paying for Social Security benefits will be paid for by
 
  A) taxes levied on workers.
  B) Social Security trust fund bonds.
  C) new federally issued Treasury bills.
  D) a new tax levied on businesses.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

irishcancer18

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 29, 2018
Answer to Question 1

If price is below its equilibrium price, quantity demanded will be greater than quantity supplied; as a consequence the market price will rise due to competition among buyers. If, however, the expected price increase occurs, quantity supplied will rise and quantity demanded will decrease. In either case, the adjustment will continue until both quantity supplied and demanded are equal at the equilibrium point.

Answer to Question 2

A


jace

  • Member
  • Posts: 541
Reply 2 on: Jun 29, 2018
:D TYSM

elyse44

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Five step nursing process Five step nursing process
Othmer’s Equilibrium Still Schematic Diagram Othmer’s Equilibrium Still Schematic Diagram
Does pregnancy occur during breastfeeding? "هل يحدث حمل أثناء الرضاعة Does pregnancy occur during breastfeeding? "هل يحدث حمل أثناء الرضاعة
Importance of Considering Gestalt Principles in Product Design (1 of 2) Importance of Considering Gestalt Principles in Product Design (1 of 2)
Iraqi market Iraqi market
"The Department of Agriculture came out today with its prediction for food price "The Department of Agriculture came out today with its prediction for food price
Video: Krebs cycle : Formation of acetyl coenzyme A and Electron transport chain

For a complete list of videos, visit our video library