How do speculators provide a more rational guide to production and consumption decisions compared to markets?
The price level which results from speculation reflects both the present and the future price of the commodity. It is thus considered a more useful guide to rational consumption and an accurate measure of scarcity.
Economics
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What is the utility-maximizing rule?
What will be an ideal response?
Economics
A consumer values a car at $30,000 and a producer values the same car at $20,000 . If the transaction is completed at $24,000 . the transaction will generate:
a. No surplus b. $4,000 worth of seller surplus and unknown amount of buyer surplus c. $6,000 worth of buyer surplus and $4,000 of seller surplus d. $6,000 worth of buyer surplus and unknown amount of seller surplus
Economics