which explains why the price indicated by p2 on the graph is higher than the equilibrium price?\nas prices…
which explains why the price indicated by p2 on the graph is higher than the equilibrium price?\nas prices rise, quantity demanded goes up.\nas prices rise, quantity demanded goes down.\nas prices rise, quantity demanded stays the same.\nas prices rise, quantity demanded disappears.
Answer
Brief Explanations:
In economics, the law of demand states that, ceteris paribus, as the price of a good rises, the quantity demanded of that good decreases. At a price (p2) higher than the equilibrium price, the quantity demanded is lower than at equilibrium due to this inverse - relationship between price and quantity demanded.
Answer:
As prices rise, quantity demanded goes down.