Describe the role of prices in market economies?

Q: Why do we use straight lines on demand and supply?

A: A demand schedule is a table that displays the quantity of goods requested in the market at various…

Q: If the price of a good is above equilibrium price then,

A: Market equilibrium is a stable situation in which the quantity demanded by the consumers and the…

Q: What if the price at a given time was less than the equilibrium price?

A: Equilibrium occurs at that point where quantity demanded is equal to quantity supplied. The price at…

Q: Suppose the demand decreases while supply remains constant. What do you predict happens to the…

A: Given that the demand decreases while the supply remains constant. This would lead to a leftward…

Q: What conditions must be met for a market to exist?

A: There are different forms of market, the one discussed in this question is the perfect competitive…

Q: When Good A and Good B are complements in production and there is a decrease in the price of Good A,…

A: Complementary good is defined as the good that would be appealing to the large part of consumers…

Q: What is diminishing prices?

A: The law of diminishing price is a hypothesis in financial aspects that predicts that after some…

Q: Explain why price moves towards equilibrium in a free market and why the equilibrium price may…

A: The free economy is the economy where no restrictions are imposed on the production activities and…

Q: If people can't afford the equilibrium price for a good, would it be a good idea for the government…

A: Before deciding whether government intervention is fair or not we first need to think about what…

Q: Studying the determination of prices in individual markets is primarily a concern of_____________.…

A: Study of economics can be divided into two branches, microeconomics and macroeconomics.

Q: Name and describe the four types of markets and the challenges they pose with respect to setting…

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: for the price of fertilizer, in regards to the price of oil. How big of a role does oil play? Is the…

A: The planet becomes additional sensorial to the benefits of big data, the oil industry does not…

Q: After the devastating typhoon Haiyan in the Philippines, the government and donor agencies embarked…

A: Jane will increase the rice production from 20 to 25 because the price is positively related to…

Q: If your price is greater than MC (P>MC) will you continue increasing your production? Explain

A: A perfectly competitive market is that market structure in which there are many buyers and sellers…

Q: Land in south western Ethiopia can often be used to grow either coffee or khat.suppose the price of…

A: Given that the land has two uses, coffee and khat would be complementary goods in production. This…

Q: In your own words, explain the function(s) of prices in market economies. If a society did not have…

A: Market economy: - The market economy is that economy where the production and pricing decisions are…

Q: Demand in economics

A: Demand is one of the basic and important concept of economics.

Q: who benefits if the price is higher than the market price?

A: When the Prie is high then the market price it means the demand for that particular good is high or…

Q: After the devastating typhoon Haiyan in the Philippines, the government and donor agencies embarked…

A: 1)Initially, the price was 1.5AUD per kg which is the equilibrium price. At this price, the quantity…

Q: Describe an outlook for the price of fertilizer, in regards to the price of oil. How big of a role…

A: Oil is extremely vital in today's global economy. Good inputs are essential for the manufacturing of…

Q: For which of the following industries is the supply-and-demand model likely to be most accurate? The…

A: In general, industries, where there exists neither excess supply nor excess demand, are considered…

Q: What are the advantages and disadvantages of the price system?

A: What are the advantages and disadvantages of the price system? Advantage: In a free market system,…

Q: Ive asked this before but the answer wasn't what I was looking for- for the price of fertilizers…

A: Fertilizers that are produced by using petrol as a key component are known as synthetic fertilizers…

Q: Who are on the supply side of the market?

A: In a market, the equilibrium price and equilibrium quantity of a good is determined by the market…

Q: where do prices come from? By prices, I am implying prices that result in a sale

A: Price is determined by the intersection of the demand and supply of a product.

Q: What is the role of price in market economies

A: When deciding an effective distribution of resources in a market economy, the price of goods plays a…

Q: ndian onion p

A: Supply and demand depicts the relationship between the quantity of a commodity which the producers…

Q: Why/When Producers/sellers are bound to follow law of supply?

A: Supply- It is an amount of a good or service that is available for use.

Q: Explain how prices behaves under different markets.

A: Price refers to the amount of money to be paid in order to acquire goods and services. Price plays…

Q: economist create a market demand schedule

A: A market demand schedule is a  tabular representation that is created by an economist to forecast…

Q: What is a market? What are the characteristics of a competitive market?

A: Trade refers to the sale, and purchase of goods, services, assets, financial securities, factors of…

Q: Name and describe the types of costs marketers must consider when setting prices?

A: Establishing rates dependent on the expenses of manufacturing, shipping, and marketing a good is…

Q: Describe the role of prices in the market economy?

A: Market economy: the production of goods and services is directed by the laws of supply and demand in…

Q: Why are participants in competitive markets called price takers?

A: A market is the collection of buyers and sellers. It is the system in which buyers and sellers can…

Q: At a price of $2, What would be created and what would be the amount of what is created?

A: Shortage: when the quantity demanded is greater than the quantity supplied then it is known as…

Q: what is a rationing mechanism?

A: The efficient allocation of scarce resources would help to equal distribution of resources.

Q: Who determines the price in perfect markets?

A: In a perfect competition, there are large number of buyers and sellers who does not control the…