If actions of the Nepalese government caused a shortage of domestic currency, then the government fixed exchange rate would beA) below the market equilibrium and dollars per rupee will tend to fall.B) below the market equilibrium and dollars per rupee will tend to rise.C) above the market equilibrium and dollars per rupee will tend to rise.D) below the market equilibrium and rupee per dollars will tend to rise.E) above the market equilibrium and dollars per rupee will tend to fall.

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19-12-2022
Business

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If actions of the Nepalese government caused a shortage of domestic currency, then the government fixed exchange rate would beA) below the market equilibrium and dollars per rupee will tend to fall.B) below the market equilibrium and dollars per rupee will tend to rise.C) above the market equilibrium and dollars per rupee will tend to rise.D) below the market equilibrium and rupee per dollars will tend to rise.E) above the market equilibrium and dollars per rupee will tend to fall.

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akursharma9034 akursharma9034 · Answer 1 · 2022-12-23T05:50:41+01:00

The correct answer is A) below the market equilibrium and dollars per rupee will tend to fall. When operating a firm, it is crucial to understand the product's market equilibrium pricing.

When a commodity's supply and demand are exactly balanced at a given price, it is said to be in a market equilibrium. The market is now stable, and nobody wants to change their position. If the quantity demanded and the quantity provided are equal at the market price, the market is in equilibrium. The price at which the quantity supplied and demanded are equal is known as the equilibrium price or market clearing price, and the quantity that corresponds to that price is known as the equilibrium quantity. The demand and supply function (Qa - bP = x + yP) can be used to compute it. An equilibrium price can be determined by solving the equation when the supply and demand are equal. To determine the quantity, enter the equilibrium price into the supply or demand function. When market supply and demand are equal, the market is in equilibrium. Therefore, the price of an item or service at the point when supply and demand are equal is the equilibrium price.

Learn more about market equilibrium here

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