Equilibrium Answers
Definition: Equilibrium is an economic balance in which no individual would be better off doing something different; an equality of supply and demand.
Example: A school with all its rooms in use is in equilibrium.
1. False: There is only one point of equilibrium.
2. An increase in Demand will raise the equilibrium price.
3. The magnitude of increase in supply and demand.
Definition: Equilibrium is an economic balance in which no individual would be better off doing something different; an equality of supply and demand.
Example: A school with all its rooms in use is in equilibrium.
1. False: There is only one point of equilibrium.
2. An increase in Demand will raise the equilibrium price.
3. The magnitude of increase in supply and demand.