1.)How does a supply shock affect equilibrium price and quantity? Supply shock is a sudden shortage of a good. A supply shock causes an excess of demand because there are not enough goods to supply everyone
2.)How is rationing different from a price-based market system? rationing is separating everything by amount not by price
3.) List three reasons why a price-based system works more efficiently than central planning.
4.)Give two examples of situations in which prices gave you an incentive to purchase or not purchase a good or service.
I went shopping and i wanted to buy a pair if pants then I saw how much they cost and put them back on the rack. I was out with my family and we decided we were hungry so we went to burger king instead of a buffet because it was cheaper.
Supply shock is a sudden shortage of a good. A supply shock causes an excess of demand because there are not enough goods to supply everyone
2.)How is rationing different from a price-based market system? rationing is separating everything by amount not by price
3.) List three reasons why a price-based system works more efficiently than central planning.
4.)Give two examples of situations in which prices gave you an incentive to purchase or not purchase a good or service.
I went shopping and i wanted to buy a pair if pants then I saw how much they cost and put them back on the rack. I was out with my family and we decided we were hungry so we went to burger king instead of a buffet because it was cheaper.