Why is the price at which the quantity demanded equals the quantity supplied the equilibrium price?
What will be an ideal response?
At the equilibrium price, the quantity demanded by consumers equals the quantity supplied by producers. At this price, the plans of producers and consumers are coordinated and there is no influence on the price to move away from equilibrium.
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Depletion of tropical rainforests is an example of
a. a negative externality b. the use of variable technology c. adverse selection d. the use of fixed technology e. a clearly defined property right
Which of the following does not shift the supply of real loanable funds to the right (i.e., increase it)?
a. A rise in real income. b. Higher consumer indebtedness levels relative to income. c. The expectation of higher incomes. d. All of the above increase the supply of real loanable funds.