Answered: 5 C) Illustrate using a diagram the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5 C) Illustrate using a diagram the effect of excess demand and excess supply to equilibrium price and quantity. D) During worldwide pandemic many of the sectors are striving, there some sectors that growing. Discuss.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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Step 1 INTRODUCTION

Demand and Supply

Demand refers to the quantities of a commodity that the consumers are ready to buy at different possible prices of the commodity. Quantity demanded refers to the specific quantity of a commodity that the buyer is ready to buy at particular prices of that commodity in the market.

Supply refers to the number of commodities the producer is ready to sell at different possible prices. Quantity supplied refers to the specific quantity of a commodity that the seller is ready to sell at specific prices of that commodity in the market.

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