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

Author Question: Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and ... (Read 33 times)

RODY.ELKHALIL

  • Hero Member
  • *****
  • Posts: 591
on: Jun 29, 2018
Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers.
 
  What will be an ideal response?

Question 2

In the above figure of a monopolistically competitive firm, the area of economic profit is
 
  A) ADB.
  B) ABC.
  C) P2AD P4.
  D) P2FEP5.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Perkypinki

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 29, 2018
Answer to Question 1

If the price is too high, the quantity supplied exceeds the quantity demanded so there is a surplus. The surplus forces the price lower. The lower price increases the quantity demanded and decreases the quantity supplied bringing the market to equilibrium, where the quantity demanded equals the quantity supplied and where the plans of buyers and sellers are coordinated. If the price is too low, the quantity demanded exceeds the quantity supplied so there is a shortage. The shortage forces the price higher. The higher price decreases the quantity demanded and increases the quantity supplied bringing the market to equilibrium, again coordinating the plans of buyers and sellers.

Answer to Question 2

D


RODY.ELKHALIL

  • Member
  • Posts: 591
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

bblaney

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

The three basic body plans of bilaterally symmetrical animals. The three basic body plans of bilaterally symmetrical animals.
The Schrader valve on this General Motors 3800 V-6 is located next to the fuel-pressure regulator. The Schrader valve on this General Motors 3800 V-6 is located next to the fuel-pressure regulator.
A typical fuel-pressure regulator that has a spring that exerts 46 pounds of force against the ... A typical fuel-pressure regulator that has a spring that exerts 46 pounds of force against the ...
A mechanical returnless fuel system. The bypass regulator in the fuel tank controls fuel line ... A mechanical returnless fuel system. The bypass regulator in the fuel tank controls fuel line ...
Mechanisms to Explain the Effects of Massage Mechanisms to Explain the Effects of Massage
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
Video: Glomerular filtrate rate: pressures that affect GFR, NFP & GFR and blood composition

For a complete list of videos, visit our video library