Question

Taking aid of offer curves, show that a price other than equilibrium relative commodity price is not

sustainable.​

Answer 1

Answer:

Taking aid of offer curves, show that a price other than equilibrium relative

Explanation:

The trade offer curve shows how much of one product one nation is willing to give up in return for a certain amount of another commodity.

The bid curve depicts the different quantities of a specific commodity demanded by one country versus the other at different relative prices.

Because of this, the bid curve is often referred to as the reciprocal demand curve.

Consumer demand exceeds market supply when the price of a product is less than the equilibrium price.