by hiaja | Jul 14, 2023 | Economics Questions
List three markets where pooling equilibriums are a problem. The second hand car market.The car insurance market.The health insurance...
by hiaja | Jul 14, 2023 | Economics Questions
What is the difference between a pooling and separating equilibrium? Separating equilibrium occurs when a market splits into two clearly identified sub markets with separate supply and demand schedules, which leads to separate prices and quantities for each sub...
by hiaja | Jul 14, 2023 | Economics Questions
The elasticity of demand for electricity is relatively price inelastic. Will a change in supply have a large, or small impact on the equilibrium price and quantity? When demand is price inelastic the slope of the demand line is steep. As a result, a change in supply...
by hiaja | Jul 14, 2023 | Economics Questions
If income levels fall in an economy, what do you think will happen to price of inferior goods and services? Demand for them may increase and, other things being equal, their prices will rise. It is possible, however, that a period of life at a higher income level will...
by hiaja | Jul 14, 2023 | Economics Questions
Following an economic crisis, a number of banks collapse. What do you think happens to the supply of banking services and the price of banking services in general? This represents a decrease in the supply of banking services, represented by a shift in the supply...
by hiaja | Jul 14, 2023 | Economics Questions
At a price of £10, consumers are willing to demand 20,000 units and firms are willing to supply 20,000 Units. Is this market in equilibrium? Yes, the market is in equilibrium because demand and supply are equal at 20,000...
