demanded
... there were a very popular toy that all the kids wanted around Christmas time, but not enough were made to meet the high demand, what would probably happen? How much would people likely pay? Why? ...
... there were a very popular toy that all the kids wanted around Christmas time, but not enough were made to meet the high demand, what would probably happen? How much would people likely pay? Why? ...
Homework C due 8th May51.5 KB
... 1.2.6 Sheet 25 Market Equilibrium – Price mechanism 1. Missing words 7 marks Market equilibrium occurs when _________________ equals _______________. At this point, economists can ascertain the market ________________ and output level. If the price charged for a given good or service is above the eq ...
... 1.2.6 Sheet 25 Market Equilibrium – Price mechanism 1. Missing words 7 marks Market equilibrium occurs when _________________ equals _______________. At this point, economists can ascertain the market ________________ and output level. If the price charged for a given good or service is above the eq ...
Practice Exam 1
... a. What are the points on the PPC represent? _____________________ b. At point C, the opportunity cost of 60 more units of consumer goods is ____________ At point E, the opportunity cost of 20 more units of capital goods is _______________ c. Comparing point B and E, which tends to promote a faster ...
... a. What are the points on the PPC represent? _____________________ b. At point C, the opportunity cost of 60 more units of consumer goods is ____________ At point E, the opportunity cost of 20 more units of capital goods is _______________ c. Comparing point B and E, which tends to promote a faster ...
Economic equilibrium
In economics, economic equilibrium is a state where economic forces such as supply and demand are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. For example, in the standard text-book model of perfect competition, equilibrium occurs at the point at which quantity demanded and quantity supplied are equal. Market equilibrium in this case refers to a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers. This price is often called the competitive price or market clearing price and will tend not to change unless demand or supply changes and the quantity is called ""competitive quantity"" or market clearing quantity.