Economics

ECONOMICSNameTutorCourseDateUniversityGiven the demand and supply of a certain commodity what testament be the equilibrium legal injury . Explain wherefore this price go out tend to hold out in the trade and why higher or lower prices if they populate willing single exist temporarilyThe price of a loving 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 afternoon 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 demand creating a deficit and this will induce or rather force the suppliers to raise the prices (Wessels W , 2006Prices in some(prenominal) market of both goods and go are a coefficient of reflection of people s willingness to either debase or sell .

valuable issues in any market are the willingness and the ability to deal 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 integrity s intention of purchasing a certain product at heart a specified achievement . When all factors are held unceasing the law of demand states that as prices fall the quantity demanded increases and when the prices increases or rather rises the quantity de manded go This means...If you want to get a! full essay, order it on our website: OrderCustomPaper.com

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