As an economist I believe the following: “I don’t think there is such a thing as a price that is too high or too low.” If you paid $500 for a pair of shoes at the store, your friend might say that the price is too much. With your understanding of supply and demand, how could you explain that the equilibrium price is neither too high nor too low.
As an economist I believe the following: “I don’t think there is such a thing as a price that is too high or too low.” If you paid $500 for a pair of shoes at the store, your friend might say that the price is too much. With your understanding of supply and demand, how could you explain that the equilibrium price is neither too high nor too low.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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