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How can excess supply in a goods market be eliminated by market forces?
This is very straighforward. An excess supply of a good implies that inventories have risen to a level higher than producers want to keep. When this happens, the producer(s) have two choices to bring inventory back into line. They can reduce the amount that they produce to a level below the level of sales until such time as the amount of excess inventory is corrected, or, alternatively, they can reduce their selling price in order to induce an increase in sales above their production rate so that the excess inventory is liquidated. In a market where there are many producers, some will choose one method while others will choose the other, while some may choose a combination of both. What is important to keep in mind is that not all producers may have the same "cost of production." The reduction in the selling price will make it unprofitable for some producers to remain in business. They can then choose to subsidize the losses in the hope that prices will return to the former level, or they can attempt to reduce their production costs by becoming more efficient. Those producers that can not achieve a reduction in cost and cannot subsidize their losses eventually will be forced to go out of business. At that point, supple and demand will again be in equilibrium.
What are two common market forces?
Two common market forces are supply and demand.
What two forces regulate the free market economy?
Basically, the two forces are supply and demand.
What forces that make market economies work are?
supply and demand
What are the factors associated with economic order quantity?
Demand and supply forces
Why is the market always moving toward equilibruim?
The market moves toward equilibrium because of the forces of supply and demand. When there is excess demand for a good or service, prices tend to rise, prompting suppliers to increase production. Conversely, when there is excess supply, prices tend to fall, leading to a decrease in production. This constant adjustment helps bring the market back to equilibrium where supply meets demand.
How does the spin of a cycle of a washing machine remove excess water from clothes?
When the washing machine spins, the centrifugal force created forces the water outwards from the clothes toward the drum walls. This process helps to expel excess water from the clothes, which then drains out through the machine's drainage system.
Why we called as excess molar volume?
There are idealand non-ideal mixtures. In the second case the intermolecular forces between the different molecules of the mixture are less (Positive deviations from Raoult's Law) or more (Negative deviations from Raoult's Law) strong than they are in the pure liquids.This difference in the intermolecular forces causes a expansion (less strong) or retraction (more strong) of the volume after the mixing, this is the cause of the excess molar volume.The excess molar volumes VE can be calculated by using measured experimental densities and correlated by the Redlich−Kister type equation.
How can excess supply in a goods market be eliminated by market forces?
This is very straighforward. An excess supply of a good implies that inventories have risen to a level higher than producers want to keep. When this happens, the producer(s) have two choices to bring inventory back into line. They can reduce the amount that they produce to a level below the level of sales until such time as the amount of excess inventory is corrected, or, alternatively, they can reduce their selling price in order to induce an increase in sales above their production rate so that the excess inventory is liquidated. In a market where there are many producers, some will choose one method while others will choose the other, while some may choose a combination of both. What is important to keep in mind is that not all producers may have the same "cost of production." The reduction in the selling price will make it unprofitable for some producers to remain in business. They can then choose to subsidize the losses in the hope that prices will return to the former level, or they can attempt to reduce their production costs by becoming more efficient. Those producers that can not achieve a reduction in cost and cannot subsidize their losses eventually will be forced to go out of business. At that point, supple and demand will again be in equilibrium.
What do contractile vacuoles do?
Contractile vacuoles are organelles in some single-celled organisms that help regulate water balance by contracting rhythmically to expel excess water from the cell. This process prevents swelling and disruption of cellular functions due to osmotic changes.
How can you get rid off air pressure after a plane ride?
I always hold my nose and mouth closed and force air into my sinus cavity. This pressure forces the ear to release the excess pressure forcing it inward.
What is the nature and kind of force when wet clothes are twisted and squeezed?
The force exerted on wet clothes when twisted and squeezed is a combination of tension and compression forces. When twisting, tension forces are exerted along the fibers of the fabric, while squeezing creates compression forces perpendicular to the surface being squeezed. Together, these forces help wring out excess water from the fabric.
How would one explain what torsion is?
Torsion can be defined as two equal twisting forces acting on a body at two opposite sides. One of the best examples would be drying a wet towel by wringing it to remove excess water.
How can you thicken runny mousse?
Place in the freezer with no top. After frozen remove any ice which forms at the top. Then cover tightly and place in refrigerator. Let it acclimate for a day. Freezing forces excess liquid to separate and can be removed as a solid.
What are two common market forces?
Two common market forces are supply and demand.
What two forces regulate the free market economy?
Basically, the two forces are supply and demand.
What is happening when you make an object charged?
When you charge an object, it gains an excess of either positive or negative charge by gaining or losing electrons. This excess charge causes the object to interact with other charged objects or materials through electrical forces.
