Equilibrium: Where Supply Meets Demand — End of Chapter Problem
In what ways does seeking a marriage partner resemble a market?
- Marriage is usually solidified with a legal contract.
- There is a “price,” namely, the commitment one makes to love, support, and spend time with the prospective partner.
- The impulse to marry is deeply rooted in emotion.
- There is a demand side and a supply side: prospective partners both demand and supply time, effort, certain capabilities, and emotional commitment.
(Multiple can be selected)
Let us first understand the key features of a market : Individual freedom of buyers and sellers is very important , economic decisions are made based on demand and supply forces , resources are owned privately and there are proper property rights . Also price is the main indicator of market equilibrium .
Answer : There is a “price,” namely, the commitment one makes to love, support, and spend time with the prospective partner.
There is a demand side and a supply side: prospective partners both demand and supply time, effort, certain capabilities, and emotional commitment.
Equilibrium: Where Supply Meets Demand — End of Chapter Problem In what ways does seeking a...