Answer to Question #276707 in Microeconomics for cyah

Question #276707

Describe market equilibrium using relevant graphs and discuss market surplus and market shortage.  



1
Expert's answer
2021-12-09T09:29:11-0500

A surplus exists when the price is above equilibrium, which encourages sellers to lower their prices to eliminate the surplus. A shortage will exist at any price below equilibrium, which leads to the price of the good increasing.


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