Textbook ExpertVerified Tutor
11 Nov 2021
Introduction
The equilibrium price is the price of goods and services when the supply is equal to the demand for the market. If the market is at equilibrium the price will not change unless an external factor changes the supply or demand, which results in disruption or disequilibrium.
The supply curve shows the positive relationship between interest rate and quantity supplied of the loanable funds. The supply curve is upward sloping and it has a positive slope.
Unlock all Textbook Solutions
Already have an account? Log in