Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If the market price suddenly deviates away from the equilibrium level due to some reason, the sellers either increase or decrease their output levels accordingly

If the market price suddenly deviates away from the equilibrium level due to some reason, the sellers either increase or decrease their output levels accordingly and the market again moves toward equilibrium. This phenomenon is explained by: the law of diminishing marginal utility. the theory of supply. the theory of demand. the invisible hand mechanism

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics and Business Strategy

Authors: Michael Baye, Jeff Prince

9th edition

9781259896422, 1259290611, 1259896420, 978-1259290619

More Books

Students also viewed these Economics questions

Question

Write each series as a sum of terms and then find the sum. 5 i=1

Answered: 1 week ago