Paraphrase each of the following statement and provide two illustrative examples.
1. The price falls when there is a surplus and rises when there is a shortage
Paraphrase
Example 1
Example 2
2. Not all markets equilibrate at the same speed.
Paraphrase
Example 1
Example 2
3. The maximum price that buyers are willing to pay for a good and the minimum price sellers are willing to accept for the good will help determine whether trade takes place between buyers and sellers.
Paraphrase
Example 1
Example 2
4. Equilibrium price and quantity are determined by supply and demand.
Paraphrase
Example 1
Example 2
Paraphrase each of the following statement and provide two illustrative examples.
1. The price falls when there is a surplus and rises when there is a shortage
Paraphrase
Example 1
Example 2
2. Not all markets equilibrate at the same speed.
Paraphrase
Example 1
Example 2
3. The maximum price that buyers are willing to pay for a good and the minimum price sellers are willing to accept for the good will help determine whether trade takes place between buyers and sellers.
Paraphrase
Example 1
Example 2
4. Equilibrium price and quantity are determined by supply and demand.
Paraphrase
Example 1
Example 2
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Look at the two tables given below, which show, respectively, the willingness to pay and willingness to accept buyers and sellers of bags of oranges. The following questions assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume market participants are those listed by name in the two tables.
Person |
Maximum price willing to pay | Actual Price | Person | Minimum acceptable price |
Bob | $18 | 10 | Carlos | $2 |
Barb | $16 | 10 | Courtney | $4 |
Bill | $14 | 10 | Chuck | $6 |
Bart | $12 | 10 | Cindy | $8 |
Brent | $10 | 10 | Craig | $10 |
Betty | $8 | 10 | Chad | $10 |
Given the equilibrium price of $10, what is the equilibrium quantity given the data above?