Business, 02.10.2019 09:30, idk8348

Both excess supply and excess demand are a result of
equilibrium.
disequilibrium.
overproduction.
elasticity.

Answers: 2

Show answers

Answers

Both excess supply and excess demand are a result of disequilibrium. It is a condition where supply and demand don’t meet in the same rate or level which is called as equilibrium.

EXPLANATION:

Disequilibrium is a condition where the variables of price and quantity don’t meet the buyers’ and sellers’ expectations. It also can be said that equilibrium is a condition where price and production are naturally brought to the middle ground. Disequilibrium is also used to define a country’s balance of payments where there is a deficit or surplus. On the contrary, when the variables of price and quantity are in agreement with the buyers’ and sellers’ expectations, the condition is called equilibrium.

Facts about disequilibrium:

•Disequilibrium will generally be resolved by the market as it enters into a new state of equilibrium.

•Disequilibrium is triggered by several reasons such as government intervention to unilateral action by the distributor or supplier and labor market inefficiencies.

•Disequilibrium is a condition when outside powers disrupt a market’s demand and supply. In result, the market goes in a state during which demand and supply are mismatched.

•In many conditions, the main cause of disequilibrium is the deficiencies which are created either in the aggregate supply or aggregate demand side of the company.

•There are two types of disequilibrium; a balance of payment and labor market. Balance payment disequilibrium is when there is a large current account deficit while labor market disequilibrium is at the time there is real wage unemployment.

LEARN MORE:

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

1.What are the pros of a mixed market economy for most citizens?

2.Excess demand and excess supply

KEYWORDS: Both excess supply and excess demand are a result of, diseqilibrium, excess demand, excess supply

Subject: Business

Class: 10-12

Sub-chapter: Economic

answered: nothingworksoutforme

The option B is correct. Both excess supply and excess demand are a result of disequilibrium.

Further Explanation:

Excess supply means the supply of the product rises, the producer produces more amount of goods. Excess demand means the demand for a particular product rises, the demand for a particular product is increased from the expected demand. The excess demand shifts the demand curve towards rightward.

Justification for the correct and incorrect

Equilibrium: This option is incorrect.

Equilibrium is a point where the demand and supply of a particular good meet. The equilibrium price is the price where demand is equal to the supply of the goods. The excess demand and excess supply do not meet at the equilibrium level.

Disequilibrium: This option is correct.

Disequilibrium is a point where the demand and supply of a particular good do not meet. The excess demand and excess supply do not meet at the equilibrium level, this is called disequilibrium. This is the correct option. C.

Overproduction: This option is incorrect.

Overproduction refers to the stage of production where the supply of the goods exceeds the demand of the good. This is not correct.

Elasticity: This option is incorrect.

Elasticity means how much change in the price of the goods due to any factor. In this situation, demand and supply are given. This option is incorrect.

Learn more:

1.Learn more about demand and supply

2.Learn more about demand and type of goods

3.Learn more about goods production

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Demand and supply

Keywords:

excess supply, excess demand, demand and supply, equilibrium, disequilibrium, overproduction, producer, seller, rises, change in the price, particular goods.

answered: Guest

True i took the test already

answered: Guest

Its stage conventional

Other questions on the subject: Business

Business, 22.06.2019 03:00, autumn8668

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 â€“ t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Answers: 3

continue

Business, 22.06.2019 14:20, ssalusso7914

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)

Answers: 2

continue

Business, 23.06.2019 00:30, peno211

Suppose there is a 6 percent increase in the price of good x and a resulting 6 percent decrease in the quantity of x demanded. price elasticity of demand for x is a. 0 b. 6 c. 1 d. 36

Answers: 2

continue

Business, 23.06.2019 11:00, gurlnerd

The – effect means tommy's – will shift because he has less purchasing power. as a result, he may choose the regular-size steak instead of the larger "hunter's portion" he prefers. the – effect means tommy may spend some of the money he saved by ordering the smaller steak to order a bigger salad.

Answers: 3

continue

Do you know the correct answer?

Both excess supply and excess demand are a result of
equilibrium.
disequilibrium.
...