Describe the market process that should occur if the price of a ...

[jace]

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.

[irishcancer18]

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]

Gracias!

[mjenn52]

Thanks for the timely response, appreciate it