Suppose the Equilibrium Price and Quantity of Bicycles Is Determined

question 104

Essay

Suppose the equilibrium price and quantity of bicycles is determined at $40 and 200 units,respectively.For some reason,the market price of the bicycles initially increases to $60 and then decreases to $20.How will these deviations from the equilibrium price be corrected in a perfectly competitive market? Explain with the help of suitable diagrams.

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Definitions:

Cell Cycle

An ordered sequence of events in eukaryotes that involves cell growth and nuclear division; consists of the stages G1, S, G2, and M.

Poly-A Tail

A stretch of adenine nucleotides added to the 3' end of mRNA molecules, protecting the mRNA and aiding in its export from the nucleus.

Transcriptional

Pertaining to transcription, the process by which genetic information from DNA is copied to RNA, leading to protein synthesis.

Posttranscriptional

Pertaining to modifications and processes that occur in a eukaryotic cell after transcription of DNA into RNA, affecting mRNA stability, translation, and other aspects.