Economics

ECONOMICSNameTutorCourseDateUniversityGiven the demand and supply of a certain commodity what volition be the equilibrium legal injury . Explain wherefore this price forget tend to hold out in the trade and why higher or lower prices if they live volition single exist temporarilyThe price of a cup of coffee is 2 which is also the equilibrium price and it will tend to prevail in the market . This is because if the price was reproofd to 3 good deal may opt for tea which is a close fill out especially if the price of tea is lower . Lowering the prices to a dollar would not be economical for the hotel . Again lower prices will attract more than demand creating a deficit and this will induce or rather force the suppliers to raise the prices (Wessels W , 2006Prices in any(prenominal) market of both goods and go are a f acial expression of people s willingness to either debase or sell .

heavy issues in any market are the willingness and the ability to procure and sell . If for instance the prices go up the consumer s ability will be compromised given the incident that incomes could be fixed and thither are other needfully to be met . Demand refers to genius s intention of purchasing a certain product deep down a specified achievement . When all factors are held ceaseless the law of demand states that as prices fall the quantity demanded increases and when the prices increases or rather rises the quantity demanded go This means...If you want to get a full essay, or! der it on our website: OrderCustomPaper.com

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