1) the price at which quantity supplied equals quantity demanded 2) where the pr
ID: 1167200 • Letter: 1
Question
1) the price at which quantity supplied equals quantity demanded
2) where the price of the porduct equals the econmic opportunity cost of that product
3) graphically, where the supply and the demand curves cross
2)The quantity demanded would be lower than the quantity supplied at that price
3) At that price, the quantity demanded would be 750 and the quantity supplied would be 100
4)At that price, the quantity demanded would be 100 and the quantity supplied would be 750
?5)At that price the market would be in equilibrium
2)There would be a surplus of lawn mowing services in the market
3)The surplus would be 500 lawn mowing services
4)The shortage would be 500 lawn mowing services
5)The surplus would be 750 lawn mowing services
6)There would be a shortage of lawn mowing services in the market
Explanation / Answer
1.
Equilibrium is defined as the price which clears the market where demand equals supply and there is no tendency to change (other things being equal)
the correct option is 4
2.
If the market price was $20 per lawn then quantity demanded is 750 and the quantity supplied is 100. There is excess demand or shortage of supply in the market.
the correct option is 3
3.
If the market price was $50 then there will be a surplus in the market which is 750 lawn mowing services.
the correct option is 5
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.