As an economist, what factors would you consider to find the market equilibrium?
What would be the most important factors?
Answer:
price and how much to supply to each seller
Supply and demand.
Supply, Demand and Inflation rate
balancing budget but that alone won;t we enough by anymeans this empire is living on tusla time. too muchdebt and too much spending. borrow from ching foo yang gto pay back fbfore long. ghey wrte it off or we wrigte it off, then what. war? It's gthe enconomy stupid.
if you graph your supply curve, then graph your demand curve, the market equilibrium is at the intersect. the answer is simply supply and demand
The market equilibrium occurs where supply equals demand.
Equilibirium can adjust according to internal markets, exchange rates, inflation, interest rates, trade defiects, long term ,short term debts. Its not just supply meeting demand everytime because a lot of poor countries thier more demand than supply because of economic inefficenies or deadweight created by goverment policies that distorted the markets. Chinese market is not in equilibrium because of lowering the value of the currency to stimulate exports, and lack of consuming what they produce. Equilbruims are never perfect the goverment sometimes protects crappy producers so producers get quick profits, and the workers are employed, but this hurts the comsumer with shoddy products. I figure the answer is complex to begin with because a lot of goverment will always distort economic incentives for politcal gain, or the some facts are always left out. Just figure the answer is grey tone to it.
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Answer:
price and how much to supply to each seller
Supply and demand.
Supply, Demand and Inflation rate
balancing budget but that alone won;t we enough by anymeans this empire is living on tusla time. too muchdebt and too much spending. borrow from ching foo yang gto pay back fbfore long. ghey wrte it off or we wrigte it off, then what. war? It's gthe enconomy stupid.
if you graph your supply curve, then graph your demand curve, the market equilibrium is at the intersect. the answer is simply supply and demand
The market equilibrium occurs where supply equals demand.
Equilibirium can adjust according to internal markets, exchange rates, inflation, interest rates, trade defiects, long term ,short term debts. Its not just supply meeting demand everytime because a lot of poor countries thier more demand than supply because of economic inefficenies or deadweight created by goverment policies that distorted the markets. Chinese market is not in equilibrium because of lowering the value of the currency to stimulate exports, and lack of consuming what they produce. Equilbruims are never perfect the goverment sometimes protects crappy producers so producers get quick profits, and the workers are employed, but this hurts the comsumer with shoddy products. I figure the answer is complex to begin with because a lot of goverment will always distort economic incentives for politcal gain, or the some facts are always left out. Just figure the answer is grey tone to it.
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