Question

Are predictions using the supply-and-demand model likely to be reliable in each of the following markets? Why or why not? Predictions using the supply-and-demand model for the apple market are likely A. not reliable because consumers have full information about apple prices. B. reliable because apple farmers sell differentiated products. C. reliable because the market for apples has many farmers and consumers. D. not reliable because apples have no transaction costs E. not reliable because the cost of trading apples is low. Predictions using the supply-and-demand model for convenience stores are likely 0 A. not reliable because it is difficult to find convenience stores. O B. not reliable because each convenience store comprises a large share of the market O C. reliable because convenience stores have only a few competitors and consumers O D. reliable because convenience stores sell identical products. O E. not reliable because consumers have limited information about convenience store prices Predictions using the supply-and-demand model for electronic games are likely

Answer 1

Answer

A) In the event of apples buyers can check the quality . It is a result of agribusiness with less inconstancy in its very own cost . Thus the market of apples can be seen well with the assistance of free market activity display .

reliable because farmers sell differentiated products

B) In instance of convinience store more often than not the storekeeper have more information about the items they are showing than the buyers .For customers they are progressively worried about obtaining their item under one rooftop as opposed to looking for the stores moving a similar item at a lower cost .

reliable because convenience stores have many competitors and consumers convenience stores have many competitors and consumers.

C)There are just couple of firms in electronic recreations showcase each moving an alternate item .Moreover firms may not be value taker as their item has a particular interest and subsequently they can influence the market cost .

not reliable because electronic games are a differentiated product electronic games are a differentiated product.

D)Used autos advertise is a sort of market in which vender has more data than purchasers as they probably am aware which of their vehicles is a lemon ( low quality vehicle) .This data asymmetry settles on purchasers choice troublesome and the free market activity show can't catch this .

not reliable because consumers know less than suppliers about used car quality.

D)Used autos advertise is a sort of market in which vender has more data than purchasers as they probably am aware which of their vehicles is a lemon ( low quality vehicle) .This data asymmetry settles on purchasers choice troublesome and the free market activity show can't catch this .