Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 6: Problem 3

Identify whether a shortage, a surplus, or equilibrium exists in the following settings: a. Fewer students apply for the first-year class at college \(X\) than spaces available. b. People who wanted to attend a baseball game were told that tickets had sold out the day before c. Houses for sale used to stay on the market for two months before they were sold. Now they are staying on the market for up to six months, and they still aren't selling.

Short Answer

Expert verified
a. Surplus, b. Shortage, c. Surplus

Step by step solution

01

Analyze Situation a

In this scenario, fewer students applied for the first-year class at college \(X\) than spaces available. It implies that the supply (spaces available at the college) is more than the demand (students applying), indicating a surplus.
02

Analyze Situation b

In this scenario, people who wanted to attend a baseball game couldn't because tickets had sold out the day before. This implies that the demand to attend the game (people who wanted tickets) was more than the supply (available tickets), indicating a shortage.
03

Analyze Situation c

In this scenario, houses that used to be sold in two months are now staying on the market for up to six months and they still aren't selling. This suggests that the supply (houses for sale) is exceeding the demand (people wanting to buy houses), indicating a surplus.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

A freeway sometimes experiences traffic congestion (bumper-tobumper traffic) and sometimes very little traffic. Explain why.

Define: a. shortage b. surplus c. equilibrium (in a market) d. equilibrium quantity e. equilibrium price f. inventory g. price ceiling h. price floor

If the shortage is 40 units and the quantity supplied is 533 units, then what does quantity demanded equal?

Housing prices are higher in city \(X\) than in city \(Y\) Using the concepts of supply and demand, explain why.

If demand increases and supply is constant, what happens to equilibrium price?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free