1. Business
  2. Economics
  3. explain how a free working market will bring the economy...

Question: explain how a free working market will bring the economy...

Question details

Explain how a free working market will bring the economy to equilibrium. Why is equilibrium important? When constructing supply and demand curves we assume that all factors affecting supply and demand remain constant except price. Explain what happens to equilibrium when price changes. Explain what happens to equilibrium when any of the factors, other than price, change.
1. Draw the supply and demand curves for frozen yogurt. Show equilibrium 2. Show and explain what will be the first thing that will happen in the market for frozen yogurt when each of the following occurs. Please show the original curves and the change so that it is clear what the change is. Price of frozen yogurt increases Rent for the frozen yogurt store decreases . Price of milk increases The government determines that frozen yogurt is hazardous to your health.
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution