Asked by
Jarmichael Cooper
on Oct 13, 2024
Verified
If the equilibrium price of an hour with a personal trainer is $45 and the market price is currently $55,then there is
A) a surplus of personal trainers
B) a shortage of personal trainers
C) equilibrium
Equilibrium Price
The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.
Surplus
The situation in which the quantity of a good or service supplied exceeds the quantity demanded at the current price; often occurs in markets where a price ceiling prevents the price from rising to its equilibrium level.
Market Price
The current price at which an asset or service can be bought or sold, determined by supply and demand.
- Illustrate the role of supply and demand in determining market equilibrium and prices.
- Recognize the implications of surplus and shortage on market conditions and how they adjust to reach equilibrium.
Verified Answer
TK
Learning Objectives
- Illustrate the role of supply and demand in determining market equilibrium and prices.
- Recognize the implications of surplus and shortage on market conditions and how they adjust to reach equilibrium.