Scribd Logo
Upload

Welcome to Scribd!

  • Meeting 6 - 13-13

    Uploaded by

    story
    10 views1 page
    Equilibrium in the market occurs when the quantity demanded equals the quantity supplied at a price of $850 and interest rate of 17.6%. If the price is above $850 at $950, there is excess supply and the price and interest rate will decrease to the equilibrium levels. If the price is below $850 at $750, there is excess demand and the price and interest rate will increase to the equilibrium levels.

    Original Description:

    acct3106

    Original Title

    Meeting 6_13-13

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Equilibrium in the market occurs when the quantity demanded equals the quantity supplied at a price of $850 and interest rate of 17.6%. If the price is above $850 at $950, there is excess supply and the price and interest rate will decrease to the equilibrium levels. If the price is below $850 at $750, there is excess demand and the price and interest rate will increase to the equilibrium levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views1 page

    Meeting 6 - 13-13

    Uploaded by

    story
    Equilibrium in the market occurs when the quantity demanded equals the quantity supplied at a price of $850 and interest rate of 17.6%. If the price is above $850 at $950, there is excess supply and the price and interest rate will decrease to the equilibrium levels. If the price is below $850 at $750, there is excess demand and the price and interest rate will increase to the equilibrium levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Market Equilibrium

    The equilibrium follows what we know from supply-demand analysis:


    • Occurs when Bd Bs, at P* 850, i* 17.6%
    • When P $950, i 5.3%, Bs > Bd
    (excess supply): P to P*, i to i*
    • When P $750, i 33.0%, Bd > Bs
    (excess demand): P to P*, i to i*

    You might also like