Log in
Economics
1
answer
0
watching
681
views

Suppose the market for hamburgers is unregulated. That is, hamburger prices are free to adjust based on the forces of supply and demand.

If a shortage exists in the hamburger market, then the current price must be higher/lower than the equilibrium price. For the market to reach equilibrium, you would expect buyers to offer higher prices/sellers to offer lower prices/persistent excess demand.

Watch
1
answer
0
watching
681
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Divya Singh
Divya SinghLv10
16 Oct 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Suppose the market for cars is unregulated. That is, car prices are free to adjust based on the forces of supply and demand. If a shortage exists in the car market, then the current price must be _______ than the equilibrium price. For the market to reach equilibrium, you would expect ________.

1. Which of the following statements is correct for a firm that can price-discriminate?

a) It should adjust prices so that customers with price-inelastic demand pay higher prices than those with elastic

demand.

b) It should adjust prices so that customers with price-inelastic demand pay lower prices than those with elastic

demand.

c) It should adjust prices so that customers with price-elastic demand pay lower prices than those with inelastic

demand.

d) It should adjust prices so that customers with price-elastic demand pay higher prices than those with inelastic

demand.

2. Suppose a monopoly can separate its customers into two groups. If the monopoly practices price discrimination, it will

charge the lower price to the group with:

a) the fewer close substitutes.

b) the lower price elasticity of demand.

c) the higher price elasticity of demand.

d) The answer cannot be determined with the information given.

3. Many hotel chains offer discounts for senior citizens. This is an example of ________ that is ________ in the United

States.

a) single-price monopoly power; legal

b) price discrimination; legal

c) market power; illegal

d) price discrimination; illegal

Question 2. In the late 1990s the prices of company shares on stock markets rose to levels which, for many firms, were much higher than warranted by the values of their assets and their profits. How can demand and supply analysis explain why this "bubble" in stock market prices was caused by expectations that share prices would continue to rise? Use a graph to illustrate the outcome. (3 points) Price (dollars per bar) 5 If both buyers and sellers expect share prices would continue to rise, the demand of stocks would go up and the supply of stocks would go down. Both resulting in a higher stock prices. Supply 3.00 (new) Supply (original) Demand (new) 1.50 1.00 0.50 Demand (original) 0 5 10 15 20 Quantity (millions of bars) (h) Increase in demand and decrease in supply

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in