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Is this correct? Thank you!-example-1

2 Answers

5 votes

Answer:

yes it is correct

Equilibrium can only occur at one price .

User Minillinim
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6 votes

Answer:

2 prices

Step-by-step explanation:

There are two things you are looking at when finding the Equilibrium:

1) Supply & Quantity: Everything has a finite number, and there is a limit to the amount that can be produced and selled at a given time.

2) Demand: This is in terms of the amount of potential customers. Most products are sold to a certain group, which can vary in size.

The first price that can affect the Equilibrium is the cost of the item. If the item is high quality/cost more, it would generally cost more as a product, for the producer is trying to turn a profit. The next price to look at is the selling price. The price must be high enough to turn a profit, yet low enough for there too be a large customer base. Of course, this does not apply to all items, as there are some that are created for only a certain group of people.

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User Christopher Mills
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