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Business Economics Assignment | Market Equilibrium

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Added on  2020-04-07

Business Economics Assignment | Market Equilibrium

   Added on 2020-04-07

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Running head: BUSINESS ECONOMICSBusiness EconomicsName of the StudentName of the UniversityAuthor note
Business Economics Assignment | Market Equilibrium_1
1BUSINESS ECONOMICS
Business Economics Assignment | Market Equilibrium_2
2BUSINESS ECONOMICS Answer 2a)Figure 1: Price of solar panel is above the equilibrium priceMarket equilibrium is obtained when demand and supply curve cuts each other (Fine 2016). ddand ss in the above figure represents the respective demand and supply curve in the market. P*is Equilibrium price and Q* is the equilibrium quantity. Suppose now, price is above theequilibrium price say at P1. At this price market supply exceed the market demand creating anexcess supply of the amount ab. For the excess quantity to be sold in the market price has to bereduced and reaches to the equilibrium price.
Business Economics Assignment | Market Equilibrium_3

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