Suppose you want to buy a popular brand of digital camera. Every store in town is out of stock. You are willing and able to pay the current market price of $300 for a camera, but you cannot find any available
Is the market for the digital camera in equilibrium? If not, is the market equilibrium price of the camera above or below $300? Use supply and demand analysis to explain your answer.
No, the market for the digital camera is not currently in equilibrium because there is a shortage of the camera at the current price of $300 . This implies that the market equilibrium price is greater than $300 .
You might also like to view...
Monopoly profits cannot persist in the long run, because there are barriers to entry
a. True b. False Indicate whether the statement is true or false
Which of the following is the correct formula for determining the unemployment rate?
a. [(The number of unemployed, working-age people seeking work)/(The number of people in the labor force)] x 100. b. (The total number of employed / The number of people in the labor force) x 100. c. (The total number of unemployed / The number of working-age people seeking work) x 100. d. (The number of people in the labor force / The number of working-age people seeking work) x 100.