BU204_03_Johnson_Jennifer_Unit_3_Homework prof correction

After reading the chapter this is what i believe

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After reading, the chapter this is what I believe “ Causes of a Shift of both the demand and supply curves” When more people want something, the quantity demanded at all prices will tend to increase. The increase in demand could also come from changing tastes, where the same consumers desire more of the same good than they previously did. Increased demand can be represented on the graph as the curve being shifted right, because at each price point, a greater quantity is demanded. When the suppliers' costs change, the supply curve will shift. Curves shift when there are non-price changes. Equilibrium when the price has moved to a level at which the quantity of a good demanded equals the quantity of that good supplied” (Krugman & Wells, 2009, p. 78). To me equilibrium means that for that monument there is exactly the same supply and demand for a product. After reading this chapter, the best way to explain it is the slope of the demand curve (downward-to-the-right) indicates that a greater quantity will be demanded when the price
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is lower. On the other hand, the slope of the supply curve (upward-to-the-right) tells us that as the price goes up, producers are willing to produce more goods. The point where these curves intersect is the equilibrium point as the supply and demand is the same. Good; Where the plans of suppliers and demanders perfectly intermesh. Cause of a Surplus a good or service when the quantity supplied exceeds the quantity demanded. Surpluses occur when the price is above its equilibrium level” (Krugman & Wells, 2009, p. 80). To me “Cause of Surplus” is when the cost of the product is too high, so it is not bought thus there is an extra of the product. An example of this would be a store selling cans of corn for $2.00 because the cost it too high no one would buy them there for the store would end up with too many cans of corn causing a surplus. Good Cause of a Shortage of a good or service “ when the quantity demanded exceeds the quantity supplied. Shortages occur when the
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