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When Price Is Above the Equilibrium Level, Suppliers Offer More

question 147

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When price is above the equilibrium level, suppliers offer more than demanders wish to buy.


Definitions:

Purchasing-Power Parity

A theory in economics that suggests that in the absence of transportation and other transaction costs, identical goods will have the same price in different markets when prices are expressed in a common currency.

Appreciate

In economic terms, it refers to the increase in value of an asset over time.

National Saving

The total amount of savings generated within a country, consisting of both private and public savings.

Domestic Investment

The total amount of money that is invested within a country's borders by its residents and businesses.

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