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Suppose that market forces of supply and demand interact in a market to determine an equilibrium price. Explain or describe how the determination of this price might serve to allocate or distribute this product to buyers in the market. 

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Anne Gillian Duero
Anne Gillian DueroLv10
28 Sep 2019

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Related questions

Market failure is the inability of

a. buyers to interact harmoniously with sellers in the market.

b. a market to establish an equilibrium price.

c. buyers to place a value on the good or service.

d. some unregulated markets to allocate resources efficiently

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.

1. Supply and demand show the relationships between two main variables, price and quantity. How are they depicted in demand, and in supply? What other factors impact the relationships between price and quantity in supply and demand? 

2.If a market is in equilibrium, is it necessarily true that all buyers and sellers are satisfied with the market price? Briefly explain.

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