DEFINE SUPPLY, DEMAND, AND EQUILIBRIUM PRICE, AND EXPLAIN THEIR RE...

99. - TEST BANK FOR BUSINESS A CHANGING WORLD 5TH CANADIAN EDITION BY FERRELL 99. - TEST BANK FOR BUSINESS A CHANGING WORLD 5TH CANADIAN EDITION BY FERRELL
TEST BANK FOR BUSINESS A CHANGING WORLD 5TH CANADIAN EDITION BY FERRELL
99. Define supply, demand, and equilibrium price, and explain their relationship with each other.

Explanation:

Answers will varyFeedback: Supply is the quantity of goods or services that businesses are willing to sell at different prices at a specific time. Demand is the quantity of goods or services that consumers are willing to buy at different prices at a specific time. Both can be shown graphically with supply and demand curves. Where the supply and demand curves intersect is the equilibrium price, the price at which the quantity of products businesses are willing to supply equals the quantity of products consumers are willing to buy at a specific point in time. If economic conditions, resource availability, degree of competition, or some other factor changes either supply or demand, a new equilibrium price will be established. Bloom's: KnowledgeDifficulty: HardLearning Objective: 01-04 Describe the role of supply; demand; and Essay Question competition in a free-enterprise system.