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ECS1501 assignment 4 2024 Given the demand for a product as Qd = 50 - 8P and the supply is given as Qs = -17,5 + 10P. You are told equilibrium is obtained at the point where Qd = Qs. The equilibrium quantity for the product is Equilibrium is a balanced s$3.01
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ECS1501 assignment 4 2024 Given the demand for a product as Qd = 50 - 8P and the supply is given as Qs = -17,5 + 10P. You are told equilibrium is obtained at the point where Qd = Qs. The equilibrium quantity for the product is Equilibrium is a balanced s
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Course
Economics IA (ECS1501)
Institution
University Of South Africa (Unisa)
ECS1501 assignment 4 2024
Given the demand for a product as Qd = 50 - 8P and the supply is given as Qs = -17,5 + 10P. You are told equilibrium is obtained at the point where Qd = Qs. The equilibrium quantity for the product is
Equilibrium is a balanced situation where all opposite forces are ba...
Started on Saturday, 22 June
2024, 2:12 PM
State Finished
Completed on Saturday, 22 June
2024, 2:24 PM
Time taken 12 mins 14 secs
Marks 16.00/16.00
Grade 100.00 out of 100.00
Question 1
Complete
Not graded
I confirm
that this assessment will be my own
individual work;
that I will not communicate with anyone
else in any way during the completion of
this assessment;
that I will not cheat in any way in
completing and submitting this
assessment.
If the price of running shoes is above the
equilibrium price, there will be an excess
supply of running shoes.
Note, that you will lose 50% of the mark
for this question if you choose the
incorrect option.
If you are not sure about the answer and
do not want to guess, choose the
“Unsure” option. You will neither receive
marks for the question nor will you lose
marks for choosing this option.
True
False
Unsure
The statement is true. At any price above
the equilibrium price, there is an excess
supply of running shoes, leading to a
surplus. Market forces then drive the
price downward to eliminate the surplus
and restore equilibrium.
Adjustment process:
To eliminate the surplus, market forces
drive the price downward:
Producers lower prices: To sell the
excess stock of running shoes,
producers reduce prices.
Quantity demanded increases: As
prices fall, more consumers are willing
and able to buy running shoes,
increasing the quantity demanded.
Quantity supplied decreases: As
prices fall, producers are less willing
to supply as many running shoes,
decreasing the quantity supplied.
These adjustments continue until the
price returns to the equilibrium level,
where the quantity supplied equals the
quantity demanded, and the surplus is
eliminated.
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