QUESTION ONE1.1 Using the diagram below, defend the point that a free market will always move fromdisequilibrium to equilibrium according to demand and supply theory.1.2PricePPP₂Excess supplyExcess demandleDQuantityDistinguish between microeconomics and macroeconomics according to economic theory.Provide examples to motivate your answer.

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QUESTION ONE 1.1 Using the diagram below, defend the point that a free market will always move from disequilibrium to equilibrium according to demand and supply theory. S Price P₁ P P₂ Excess supply Excess demand 1 le D Quantity

QUESTION ONE 1.1 Using the diagram below, defend the point that a free market will always move from disequilibrium to equilibrium according to demand and supply theory. S Price P₁ P P₂ Excess supply Excess demand 1 le D Quantity

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter3: Demand, Supply, And The Market Process

Section: Chapter Questions

Problem 14CQ

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