Excess supply over demand will place a price advantage on...
Excess supply over demand will place a price advantage on ____
Government
Foreign investors
Suppliers
Consumers
Correct answer is D
This is because, according to the concept of equilibrium, if supply increases while demand remains constant, there will be an excess of supply over demand. This will bring about a decrease in the equilibrium price of the commodity and an increase in the equilibrium quantity. This gave rise to the fifth law of demand and supply which states that: “an increase in the supply of a commodity will cause the equilibrium price to fall and the quantity demanded to increase, while a decrease in supply will cause the equilibrium price to rise but the quantity demanded will fall”.
The purely competitive firm should close down when its price is less than its ...
In order to add value to Nigeria agricultural produce, there is need to ...
One of the argument against the presence of middlemen in the distribution chain is that they ...
In Economics, the reward for labour is in the form of ...
The direct exchange of one goods for another without the use of money is known as ...
In Nigeria, the bank that can correctly be described as a unit bank is ...
If monopoly is attempting to maximize profit, which of the following should it attempt to do ...
In the diagrams, the opportunity cost of a unit of cotton in terms of cocoa is ...