Explain how the price system eliminates a shortage, Microeconomics

Assignment Help:

Explain how the price system eliminates a shortage.

A deficiency means that quantity demanded is greater as compared to quantity supplied. This will lead to upward pressure on price.Since price rises, quantity demanded falls and quantity supplied rises.  This will carry on until quantity demanded is equal to quantity supplied.


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

Risk Curves, Does the curve represent if the risk is NOT taken and the line...

Does the curve represent if the risk is NOT taken and the line connecting two points on the curve represents if the risk IS taken?

Evaluate the demand function, Lab Exercise 1. Taco Del Mar has completed a ...

Lab Exercise 1. Taco Del Mar has completed a study of weekly demand for its tacos in Washington State's regional markets.  The study developed the following demand function: Q =

Assignment, state the law of downward sloping demand

state the law of downward sloping demand

Properly mixed strategy, A " properly mixed strategy " means a mixed strate...

A " properly mixed strategy " means a mixed strategy that does not assign all the probability to one pure strategy. In other words, it is not a pure strategy. Consider a simultaneo

Describe the benefits of globalization, Question: There is widespread b...

Question: There is widespread belief that the process of globalization has largely bypassed Sub-Saharan Africa, leaving the sub-continent in a state of marginalization in the w

Economics from a different perspective, Economics; Different Perspectiv...

Economics; Different Perspective ? Economics is the knowledge of the choices taken by people who are faced with scarcity. ? Scarcity is a condition

Statistics, define statistics in plural and singular sense

define statistics in plural and singular sense

Quantitatif method, When the demand function is 2Q - 24 + 3P = 0, find the ...

When the demand function is 2Q - 24 + 3P = 0, find the marginal revenue when Q=3.

Capital formation, Capital formation: Growth Economists believe that ...

Capital formation: Growth Economists believe that accumulation of capital is one main source of growth of an economy. Emphasis is given to the accumulation of more capital pe

Write Your Message!

Captcha
Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd