The 45 degree line represents the equilibrium condition: Y=Z. Goods Supply = Goods Demand. In case that demand is 10 supply has to be 10... if demand is 8 => supply has to be 8... if demand is zero =>supply has to be zero.... the corresponding curve starts in the origin and has a slope of +1... This is a 45 degree line... Ok?
A literal life saver sir, do you have any other socials where we can interact with you?
what is the reason for angle to be 45 degree in the cross?
The 45 degree line represents the equilibrium condition: Y=Z. Goods Supply = Goods Demand. In case that demand is 10 supply has to be 10... if demand is 8 => supply has to be 8... if demand is zero =>supply has to be zero.... the corresponding curve starts in the origin and has a slope of +1... This is a 45 degree line... Ok?
@@geostadt578 thank you