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Equilibrium price |
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Equilibrium price The price at which the supply of goods matches demand. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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The hypothesis does not anticipate a price reversal because the new equilibrium price reflects the excess demand and is the result of the new distribution of security holders. For example, a 1 percent increase in world fuel consumption generates a 1 percent increase in the equilibrium OPEC oil export price, with an adjustment rate of 40 percent per quarter toward the new equilibrium price level. In almost any other unregulated market, an increase in demand against a fixed supply is sure to push up the equilibrium price," writes economist Charles Clotfelter in Buying the Best, a 1996 study of higher-education finances that focuses on four elite schools. |
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