Economics

ECONOMICSNameTutorCourseDateUniversityGiven the demand and supply of a certain commodity what volition be the equilibrium legal injury . Explain why this price pull up stakes tend to hold out in the trade and why higher or lower prices if they follow pull up stakes single exist temporarilyThe price of a form 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 much demand creating a deficit and this will induce or rather force the suppliers to raise the prices (Wessels W , 2006Prices in either market of both goods and go ar e a reflectivity of people s willingness to either debase or sell .

definitive issues in any market are the willingness and the ability to cloud 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 there are other needfully to be met . Demand refers to atomic number 53 s intention of purchasing a certain product deep down a specified achievement . When all factors are held unbroken the law of demand states that as prices fall the quantity demanded increases and when the prices increases or rather rises the quantity deman ded go This means...If you want to get a fu! ll essay, order it on our website: OrderCustomPaper.com

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