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.

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Chapter 1, Problem 8P

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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.

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