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 71 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
Great answer, keep it coming :)

xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

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?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

The formation of gametes by the process of meiosis is known as gametogenesis. The formation of gametes by the process of meiosis is known as gametogenesis.
The lower respiratory tract and the process of gas exchange. The lower respiratory tract and the process of gas exchange.
Describe the development of atherosclerosis, including its role in the risk of heart disease Describe the development of atherosclerosis, including its role in the risk of heart disease
Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product Overallocation of Labor to Farming When Farmworkers Are Paid Their Average Product
The communication process The communication process
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
Video: Gas exchange - partial pressure, locations, external and internal respiration

For a complete list of videos, visit our video library