What mechanism allows the ecnomy to move toward equilibrium

Assignment Help Microeconomics
Reference no: EM13182285

If the price level is above the equilibrium price level, how does the aggregate quantity of goods and services demanded compare to the aggregate quantity of goods and services supplied at the price level? Is this a condition of equilibrium? If not, then what mechanism allows the ecnomy to move toward equilibrium?

Reference no: EM13182285

Questions Cloud

What evidence supports ralph under each theory : Ralph came to you, his lawyer, for advice and redress. He tells you his story and asks what he can do. You patiently explain to Ralph there are two theories of sexual harassment to pursue. What are they? And what are the elements of each theory..
Type of quality control : You may be aware of this, but you have a lot of submissions where the person uploaded the directions for the paper, not the paper. So, as an example, HR587ON, you have three submissions that are the instructions from the professor in how to write the..
Building a computer music library will go forward : The first letter is to be sent to Mr. Bernard Olsen, 155 Main Street, Elmsford, NY  10523 - Having reviewed more then 50 applications for our field representative position, you are our top choice for this exciting opportunity to join our excellent..
Why does plato believe in absolute truth : Why does Plato believe in Absolute Truth? Where does this truth come from? How does his view of death and immortality proceed from his belief in Absolute Truth?
What mechanism allows the ecnomy to move toward equilibrium : If the price level is above the equilibrium price level, how does the aggregate quantity of goods and services demanded compare to the aggregate quantity of goods and services supplied at the price level? Is this a condition of equilibrium? If no..
Predict what the next generation of hris functionality : Predict what the next generation of HRIS functionality will be and how likely it will generate comparable reductions in cost as compared to the functionality that was developed due to Y2K.
Which are must haves for a student to chosen profession : 1. Discuss your top three resources which are "must haves" for a student in your chosen profession (do not forget to provide the proper references for your classmates' benefit). 2. Why are they important to you as both a student and a professional?
State pure acid phosphatase : A 0.1mL Pure Acid phosphatase (0.5mg/ml) hydrolyzes 0.2mmol of pnPP wall in 5 min. what is the specific activity?
Explain why the income of farms falls : Agricultural commodities are known to have a price-inelastic demand and the be necessities, How can this information allow us to explain why the income of farms falls (a) after a good harvest? (b) In relation to the incomes in other sectors of the..

Reviews

Write a Review

Microeconomics Questions & Answers

  Lowest oppurtunity cost of completing the task

Keeping in mind that one must take off work to complete the task who has the lowest oppurtunity cost of completing the task.' Sam, Both have the same identical cost, Teresa.

  How to maximize the profit?

Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.

  Decisions of short run production-price decline

A firm produces 10 units per week at a price of $500 each. With AFC of $100 and AVC $350 per unit, the firm is earning economic profits of $500 per week.

  Revenues from gasoline taxes

Governments have sometimes not remembered about elasticity when they formulate tax rule. A few years before the city fathers in Washington DC wanted to raise revenues so they raised gas tax by ten cents a gallon.

  Production function-perfect substitutes

Having a little trouble setting this problem up. Would appreciate the detailed set up and solution. A production function has 2 inputs - labor and capital. Both are perfect substitutes. Existing technology permits 1 machine to do work of 3 workers..

  How organisations design services to attract customers

Identify as the need for organisations to develop their services offerings and discuss how organisations design and build services to attract new and existing customers to buy their services.

  Write an assembly language subroutine

Write an assembly language subroutine

  Suspension of international trading and financial activities

Large-scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face the proble..

  Law of diminishing marginal rate of technical substitution

What's the difference between the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution?

  Complete the constraint for turnip and millet production

Complete the constraints for a 2-year crop rotation between oats and barley in the homestead paddock and complete the constraint for turnip and millet production in the South Hill paddock

  Draw a supply-demand diagram of the kenyan mangoes market

Draw a supply-demand diagram of the kenyan mangoes market to illustrate both the autarky and free trade positions. make sure you use all the information presented in the some facts above?

  Explain key microeconomics terminology

determine optimal consumer buying decisions in the context of utility theory. compare and contrast optimal pricising and output decisions in various market structures. apply supply and demand theory to both prodcut and factor markets.

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