Microeconomic
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Title: Microeconomic

Essay Details:

Subject: Business
Author:
Date: April 21, 2016
Level:
Grade: A
Length: 3 / 717

Essay text:

The equilibrium price will be at RM 4.00 and the equilibrium quantity will be at 8,000 pcs. c. Suppose that the price currently at RM 5.00 (above the equilibrium price of RM 4.00), the demand will be only for 6,000 pcs where else the supply will be at 10,000 pcs. This will create the excess supply of flashlight in the market. (Supply > Demand) Due to the price are above the equilibrium price and the supply quantity more than the demand quantity, some of the flashlight will not be bought by the consumers. Therefore, downward pressure on the market price of flashlight will occurred. This means the price of the flashlight will be forced down to RM 4...

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