Describe What Would Happen in a Market If the Current

question 200

Essay

Describe what would happen in a market if the current price were above the equilibrium price (assume no government interference).Using the same assumptions, describe what would happen if the current price were below the equilibrium price.Use a graph to explain your answer.

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Definitions:

Produce More

The act of increasing the output or quantity of goods or services produced by a company, entity, or individual.

Trade Restrictions

Government-imposed limitations on the free exchange of goods and services between countries.

Unilaterally

Acting or done by one side alone without agreement or consultation with others.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.