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Macroeconomics : Supply & Demand

This assignment requires the student to describe equilibrium, surplus, and shortage, explain the relationship between Qd and Qs, and between Supply and Demand curves. It also asks for the causes of shortages and surpluses in a free market, and examples of real-world shortages and surpluses. Additionally, the student needs to explain why surpluses and shortages are inefficient and how and why we return to equilibrium in the case of a surplus or shortage.

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Added on  2022-08-13

Macroeconomics : Supply & Demand

This assignment requires the student to describe equilibrium, surplus, and shortage, explain the relationship between Qd and Qs, and between Supply and Demand curves. It also asks for the causes of shortages and surpluses in a free market, and examples of real-world shortages and surpluses. Additionally, the student needs to explain why surpluses and shortages are inefficient and how and why we return to equilibrium in the case of a surplus or shortage.

   Added on 2022-08-13

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Macroeconomics
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Macroeconomics : Supply & Demand_1
Macroeconomics 1
Assignment 1:
1A
Equilibrium: It refers to a situation in where supply and demand are balanced which means the
demand and supply of one product are identical. Qd and Qs have direct relationship in state of
equilibrium. Supply and demand curve also have a direct relationship with each other in case of
equilibrium.
Surplus: economic surplus refers to sum of producer surplus and consumer surplus. It is the
benefit that producer and consumer earn when they sell or purchase the products. Qs is always
greater than Qd in case of surplus position (Qs > Qd). Supply curve grows with a slight
increment in demand curve.
Shortage: it event occurs when the quantity demanded for product exceeds the quantity supplied.
Qd in given case is more than the Qs in market (Csaba, 2017).
Macroeconomics : Supply & Demand_2

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