the price (p) of designer jeans is affected by the supply (S) and the demand (D). which of these represent an equilibrium price for designer jeans?

Question

Social Studies

Sanaa Jones

21 May, 21:21

the price (p) of designer jeans is affected by the supply (S) and the demand (D). which of these represent an equilibrium price for designer jeans?

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Answers (1)

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Andreas Nielsen · Answer 1

The answer is The intersection of P1 and Q1

Explanation: The equilibrium is reached when demand equals supply.

Demand and Supply is one of the bases of the market and consists of the relationship between the price of goods and services offered and the existing demand for them.

One of the most important concepts in economics as it works as a pricing model and determines how best to allocate resources. Because of this regulatory function, the law of supply and demand is the very essence of economic liberalism, which advocates an independent and self-regulating market.