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Economic Simulation

Economic Simulation

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Title: Economic Simulation

Essay Details:

Subject: Business

Author: James C

Date: August 25, 2016

Level: University

Grade: A

Length: 3 / 672

Essay text:

When the two are placed on a graph they form a relationship balancing the price of a good or service on a specific available amount in relation to the consumers’ interest. The simulation showed how they reach this equilibrium between the two slopes and why it is necessary. The equilibrium point expresses the exact point where the quantity demanded equals the quantity supplied. If the price is set below equilibrium there would be a shortage in supply due to the overall demand increasing, an example of this would be a sale that is getting rid of surplus or outdated goods. If the price is set above the equilibrium there would be a surplus in goods because the price is set too high in comparison to the demand...

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