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Which explains why the price indicated by p2 on the graph is lower than the equilibrium price? As prices fall, demand goes up. As prices fall, demand goes down. As prices fall, demand stays the same. As prices fall, demand disappears Which needs to happen in order to stop disequilibrium from occurring? Q needs to be coordinated with supply. Q needs to be coordinated with demand. The price of goods needs to be increased. The price of goods needs to be decreased.

Justin Parker

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Brandon Scott on December 14, 2018

Answer: As prices fall, demand goes up. The price of the good should be increased. Explanation:According to the law of demand, quantity demand of a good is inversely proportional to its own price. So, when the price falls the quantity demanded for the good must go up and when price rises quantity demanded for the good must fall. When the price P2 is less than the equilibrium price there is an imbalance in the economy. In Q2, the demand for a good is greater than its supply. So, in order to achieve the equilibrium price of the good should be increased until the demand of a good is equal to its supply.


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