Which of the following situations describes equilibrium and which does not? Which does not? If the situation does not describe an equilibrium, what would an equilibrium look like? Many people regularly commute from the suburbs to downtown Pleasantville. Due to traffic congestion, the trip takes 30 minutes via highway but only 15 minutes via side stress. At the intersection of Main and Broadway are two gas stations. One station charges $3 per gallon for regular gas and the other charges $2.85 per gallon. Customer can get service immediately at the first station but must wait in a long line at the second. Every student enrolled economics 101 must also attend a weekly tutorial. This year there are two sections offered. Section A and section B, which meet at the same in adjoining classrooms and are taught by equally competent instructors. Section A is overcrowded, with people sitting on the floor and often unable to see what is written on the board at the front of the room. Section B has many empty seats.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 8P

To determine

Which of the following situations describes equilibrium and which does not? Which does not? If the situation does not describe an equilibrium, what would an equilibrium look like?

Many people regularly commute from the suburbs to downtown Pleasantville. Due to traffic congestion, the trip takes 30 minutes via highway but only 15 minutes via side stress.

At the intersection of Main and Broadway are two gas stations. One station charges $3 per gallon for regular gas and the other charges $2.85 per gallon. Customer can get service immediately at the first station but must wait in a long line at the second.

Every student enrolled economics 101 must also attend a weekly tutorial. This year there are two sections offered. Section A and section B, which meet at the same in adjoining classrooms and are taught by equally competent instructors. Section A is overcrowded, with people sitting on the floor and often unable to see what is written on the board at the front of the room. Section B has many empty seats.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Analyze financial banking products from the Asset-Based Financial Products side (like credit cards, loans, mortgages, etc.). Examine aspects such as liquidity, risk, and profitability from a company and an individual point of view. Ensure that the interventions demonstrate analytical skills and clearly express the points of view regarding the topic.

provide source where information was retrieved NAME OF SCHOOL: Florida Polytechnical college ADDRESS: PRIVATE OR PUBLIC: ENTRY REQUIREMENTS - GPA, SAT/ ACT SCORES: IN STATE TUITION COST: DORMITORY COST: OFF CAMPUS HOUSING OPTIONS: AVERAGE MONTHLY RENT FOR A ROOM in the area: MEAL PLAN: Do they have them? Are they mandatory for freshmen? How much $: CAMPUS SIZE: (don't put acres - is it a small, medium, or large campus?) TEACHER STUDENT RATIO/CLASS SIZE: NUMBER OF UNDERGRADUATE (freshmen, soph, junior, seniors) STUDENTS ON CAMPUS: FINANCIAL AID/SCHOLARSHIPS OPPORTUNITIES: ACCEPTANCE RATE: GRADUATION RATE: ONLINE OPTION? BUSINESS DEGREES: (list them) ACADEMIC SUPPORT - TUTORING: JOB PLACEMENT/CAREER SERVICES: what % of students get lined up with jobs right out of college with the school's help? INTERNSHIP OPPORTUNITIES: Paid? Unpaid? STUDY ABROAD PROGRAMS: Do they exist? How much $? SPORTS: Competitive - D1, D2, D3, etc? Intramural? (non-competitive sports opportunities) CLUBS: How many?…

Explain the following: How is 4 to 5 a 22% increase? How is 100 to 80 a 22% decrease? Not pictured: How is 100 to 90 a 11% decrease? How is 100 to 50 a 67% decrease?