Question: Why is the price at which the quantity demanded equals the quantity supplied the equilibrium price?

Why is the price at which the quantity demanded equals the quantity supplied the equilibrium price?

Step by Step Solution

★★★★★

3.29 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

At the equilibrium price the quantity demanded ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

684-B-E-E-P (381).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

Marshall defined an equilibrium price as one at which the quantity demanded equals the quantity supplied. a. Using the data provided in problem 1.1, show that P = 3 is the equilibrium price in the...

Q:

a. Create a spreadsheet model for this problem and solve it. b. What is the optimal trading plan? c. What is the optimal transaction cost (in equivalent USD)? d. Suppose that another executive thinks...

Q:

Suppose that the demand for broccoli is given by Demand: Q = 1,000 5P where Q is quantity per year measured in hundreds of bushels and P is price in dollars per hundred bushels. The long-run supply...

Q:

Question below Why is the price at which the quantity demanded equals the quantity supplied the equilibrium price? The mice at which the quantity demanded equals the quantity supplied is the...

Q:

1 What is the equilibrium price of a good or service? At the price at which the quantity demanded equals the quantity supplied neither buyers nor sellers can do business at a better price. Buyers pay...

Q:

5 Why is the equilibrium price the best deal available for both buyers and sellers? At the price at which the quantity demanded equals the quantity supplied neither buyers nor sellers can do business...

Q:

3 Over what range of prices does a surplus arise? What happens to the price when there is a surplus? At the price at which the quantity demanded equals the quantity supplied neither buyers nor...

Q:

2 Over what range of prices does a shortage arise? What happens to the price when there is a shortage? At the price at which the quantity demanded equals the quantity supplied neither buyers nor...

Q:

A price ceiling is a government regulation that sets A. the price so that the quantity demanded equals the quantity supplied. OB. the maximum legal price. C. the minimum legal price. D. the actual...

Q:

The equilibrium price is the price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves.

Q:

Entrepreneurs Consultants, a state agency, was established to provide consulting services to small businesses. It maintains only a single general fund and accounts for its activities on a modied...

Q:

19. The 1.0 m tall cylinder shown in the figure contains air at a pressure of 1 atm. A very thin, frictionless piston of negligible mass is placed at the top of the cylinder, to prevent any air from...

Q:

describe Debt Debt with Conversion and Other Options ( Subtopic 4 7 0 - 2 0 )

Q:

The dramatic slowdown in the growth of credit in the wake of the financial crisis that began in 2007 triggered a credit crunch during which credit was hard to get. As a result, the performance of the...

Q:

What is the relative price of root beer in terms of DVDs and what is the opportunity cost of a bottle of root beer? Marc has a budget of $20 a month to spend on root beer and DVDs. The price of root...

Q:

Draw a graph of Marcs budget line with the quantity of DVDs on the x-axis. What is the slope of Marcs budget line? What determines its value? Marc has a budget of $20 a month to spend on root beer...

Q:

Draw a graph of Marcs budget line with the quantity of DVDs on the x-axis. What is the slope of Marcs budget line? What determines its value? Marc has a budget of $20 a month to spend on root beer...

Q:

Use the puts ( ) function to display the message to the screen.An array with a float datatype to store the prices of the itemsPrompt the user to enter how many items they have to total. Use a for ( )...

Q:

Question No: 07 This is a subjective question, hence you have to write your answer in the Text-Field given below. Ms. Rashmi Rangarajan is a Fund Manager at Credit Suisse, Hong Kong. She is...

Q:

Mills Mining is considering the purchase of additional equipment. The proposed project has the following features: The equipment has an invoice price of $390,000 and will cost $40,000 to modify for...