Microeconomics
Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 4, Problem 7QP
To determine

The fewer exchange rates under disequilibrium price.

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Consider the market for a good X. Suppose that P0=$8, P1=$25, PB=$22 , PA=$10, and equilibrium price P*=$15. If Q0=100, what are the Gains from Trade of the 100th unit exchanged if trade takes place at the equilibrium price? (Do not include a dollar sign $ in your answer)
At prices below equilibrium, the quantity exchanged is equal to the quantity supplied. True, false, or uncertain?
Assume the equilibrium price in a free market for an office table is R320,00. If the price of the table moves up to R400,00, explain how the market for this piece of furniture moves from disequilibrium to equilibrium.
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