Because demand curves and supply curves are always shifting, markets can never attain an equilibrium.” Does this imply that the concept of equilibrium is not useful?
Answer to relevant Questions“A decrease in supply will lead to an increase in the price, which decreases demand, thereby lowering price. Thus, a decrease in supply has no effect on the price of a good.” Evaluate this statement.With the per-unit prices of broccoli (B) and pork rinds (R) equal to $ 2 and $ 1, a consumer, George, with an income of $1,000 purchases 400R and 300B. At that point, the consumer’s MRSBR = 2R / 1B. Does this mean that ...Is it inconsistent to claim that (a) people’s preferences differ and (b) at their current consumption levels, their marginal rates of substitution are equal?If the per-unit price of college education rises and the prices of all other items fall, is it possible for the consumer to end up on the same indifference curve as before the price changes? If so, will the consumer be ...Suppose that the P–C curve associated with a pharmaceutical drug is downward sloping. If the government underwrites a certain percentage of consumers’ drug purchases, will the government outlays associated with such a ...
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