2. Describe market equilibrium in terms of the following characteristics d. How supply and demand interactions...
2. Describe market equilibrium in terms of the following characteristics
d.
How supply and demand interactions should result in market equilibrium, when the
price is below equilibrium. (For this item, I suggest starting
at a price and quantity that is not equilibrium, then describing how the market will
move towards equilibrium)
e.
Producer surplus and how it changes as the market price approaches equilibrium from a
price below equilibrium.
f.
Consumer surplus and how it changes as the market price approaches equilibrium from
a price above equilibrium.
Homework Answers
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2. Describe market equilibrium in terms of the following
characteristics
d.
How supply and demand interactions...
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