Question

Why does the market tend to shift back to equilibrium even without external intervention? Option Because of fluctuations in currency exchange rates To maintain stability and balance As a result of changes in consumer preferences Due to government regulations

          Why does the market tend to shift back to equilibrium even without external intervention?
Option
Because of fluctuations in currency exchange rates
To maintain stability and balance
As a result of changes in consumer preferences
Due to government regulations

Why does the market tend to shift back to equilibrium even without external intervention?
Option
Because of fluctuations in currency exchange rates
To maintain stability and balance
As a result of changes in consumer preferences
Due to government regulations

Added by Scott F.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Haricharan Gupta

05/19/2022

Step 1

When there is excess demand for a product or service, prices tend to rise, which in turn incentivizes producers to increase supply. Conversely, when there is excess supply, prices tend to fall, leading producers to decrease supply. This process continues until Show more…

Show all steps

Thanks for your feedback!

Why does the market tend to shift back to equilibrium even without external intervention? Option Because of fluctuations in currency exchange rates To maintain stability and balance As a result of changes in consumer preferences Due to government regulations Option Due to government regulations As a result of changes in consumer preferences To maintain stability and balance Because of fluctuations in currency exchange rates Why does the market tend to shift back to equilibrium even without external intervention?