Question

Use yor keyboard(don’t use your handwriting) Thank you..

I need new and unique answers, please use your own words, (don’t copy and paste),

No plagiarism

Econ101

The Q

Recognize how changes in supply and demand affect market outcomes and explain the effect of government regulation on prices?

Use your own words and be sure to support your statements with logic and arguments.

Answer 1

when there is a change in supply and demand , it will affect market outcome by the magnitude of supply and demand. such that , when there is increase in demand for all price level, the market outcome will increase or quanttiy demanded will increase and price rises and vice-versa on the other hand, when the supply increase at all price level, the quantity demanded increase but price fall due to surplus of good in market which cause price to fall and increase in quanttiy demand due to lower price and vice-versa.

government regulate price by two mechanism which call price floor and price ceiling. when the market price is higher than equilbruim price , the government control price by apply price ceiling to control price and when the price is too low , the government apply price floor to set the price above the equilbruim price.