Explain how the price system eliminates a surplus, Microeconomics

Assignment Help:

Explain how the price system eliminates a surplus.

The meaning of surplus is that quantity demanded is less as compared to the quantity supplied. This will lead to downward pressure on price. Since price falls, quantity demanded rises and quantity supplied falls. This will carry on until quantity demanded is equal to quantity supplied.

Related Discussions:- Explain how the price system eliminates a surplus

#ttitl derivation of demand funcation, derivation of demand funcation usin...

derivation of demand funcation using indifferance curv ordelreay and competed demand curv

PRODUCTION, WHAT IS A PRODUCTION FUNCTION SCHEDULE?

WHAT IS A PRODUCTION FUNCTION SCHEDULE?

Indifference curve, assigment

assigment

Nominal exchange, if the Japanese yen appreciates against the U.S. dollar, ...

if the Japanese yen appreciates against the U.S. dollar, do the Japanese businesses gain by a decrease in the dollar price of exports to the United States

Cost-of-living indexes, COST-OF-LIVING INDEXES * The CPI is computed e...

COST-OF-LIVING INDEXES * The CPI is computed each year as the ratio of cost of a typical group of consumer goods and services today in comparison to the cost during a base per

Explain the difference between a stock and a flow, Explain the difference b...

Explain the difference between a stock and a flow. A stock is something whose quantity is calculated at a point in time, whereas a flow measures the quantity of something ove

Economic profit in a monopoly 2006 ap exam, is it just assumed that a monop...

is it just assumed that a monopoly graph is showing economic profit instead of accounting profit

Cost curve of n organisation, how to start an assignment

how to start an assignment

Explain features of outward-oriented and inward-oriented, The main features...

The main features of outward-oriented and inward-oriented development strategies. Inward- oriented as focus on reducing domestic reliance on imports by executing high barrier

Indifference curve analysis, You are a commuter student at a local universi...

You are a commuter student at a local university. Because of the steep rise in gasoline prices, your parents decide to give you enough additional weekly cash so that you can affor

Write Your Message!

Name

Email id

Message

Verfication Code

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages