ECONOMICSNameTutorCourseDateUniversityGiven the demand and supply of a certain commodity what volition be the equilibrium legal injury . Explain why this price provide tend to hold out in the trade and why higher or lower prices if they make up will single exist temporarilyThe price of a shape 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 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(prenominal) demand creating a deficit and this will induce or rather force the suppliers to raise the prices (Wessels W , 2006Prices in whatever market of both goods and go are a reflexi on of people s willingness to either debase or sell .
fundamental issues in any market are the willingness and the ability to secure 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 at that place are other needfully to be met . Demand refers to one(a) s intention of purchasing a certain product in spite of appearance a specified achievement . When all factors are held immutable the law of demand states that as prices fall the quantity demanded increases and when the prices increases or rather rises the quantity demand ed go This means...If you want to get a ful! l essay, order it on our website: OrderCustomPaper.com
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