when can we have a shortage or a surplus? can you give me an example?
thank u
2007-04-04 10:59:58 · 5 answers · asked by lolita 2 in Social Science ➔ Economics
In equilibrium economic theory it can't happen because a market clearing price is aways reached so supply=demand. In the real world, markets take time to adjust, so stores offer goods at above market clearing prices for a time, and when they discover they have a surplus they have a "sale". If a toy becomes "hot" at Christmas, it will sell at above retail price on eBay because there is a "shortage" at the retail price. The same is true for tickets to popular events. Natural and political events disrupt supply chains, so a shortage will develop in local regions, for example water and ice after hurricanes.
2007-04-04 13:54:59 · answer #1 · answered by meg 7 · 0⤊ 0⤋
When higher prices cannot lead to expansion of supply. For example, the demand for seats for the World CUp soccer final between Brazil and Argentina. All across the world, people would like to buy a seat in the stadium at exorbitantly high prices but supply cannot be augmented. The official price will be always lower than the black market prices.
2007-04-07 19:39:27 · answer #2 · answered by sensekonomikx 7 · 0⤊ 0⤋
i ordered 100 boxes i sold 125 boxes ...
2007-04-04 18:17:13 · answer #3 · answered by lil pit cat 71 5 · 0⤊ 0⤋
no sorry I am too tired to think
2007-04-04 18:06:48 · answer #4 · answered by Mary 5 · 0⤊ 0⤋
http://imvu.com/catalog/web_invitation.php?userId=10482813&from=power-email
2007-04-04 18:02:38 · answer #5 · answered by pianodude 2 · 0⤊ 1⤋