Demand and supply influences equilibrium price
Changes in both demand and supply of a commodity might or might not influence its equilibrium price. Describe.
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Answer: If demand and supply of a commodity change uniformly, and in similar direction there will be no effect on its price. On other hand, an uneven change in demand and supply will influence equilibrium price. Whenever demand rises more than supply, then equilibrium price will increase. On other hand, when supply rises more than demand, equilibrium price will down or fall.
In addition to price, what are the other determinants that consumers want to buy?
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Price elasticity of demand: The Price elasticity of demand refers to the degree of responsiveness of the quantity demanded to modifications in price. Ed = (ΔQ/Δ P) x (P/Q)
The word economists employ to explain a condition where a powerful seller confronts the powerful buyer is: (1) Reciprocal exploitation. (2) Strategic bloc management. (3) Dialectical bargaining. (4) Ancillary reciprocity. (5) Bilateral monopoly. Discover Q & A Leading Solution Library Avail More Than 1453944 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1942580 Asked 3,689 Active Tutors 1453944 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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