EBK MODERN PRINCIPLES OF ECONOMICS
3rd Edition
ISBN: 9781319030926
Author: COWEN
Publisher: YUZU
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Chapter 8, Problem 1FT
To determine
Eliminate shortage in free market.
Expert Solution & Answer
Explanation of Solution
A free market eliminates shortage by letting the price rise. By this way, it tends to reduce the demand for a good or service while increasing the supply, thereby eliminating shortage.
Economics Concept Introduction
Concept Introduction:
Free market: Free market is an economic system in which prices of goods and services are determined by the open market and consumers, that is demand and supply is based on no or little government control.
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The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry.
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Quantity/time
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Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost.
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Chapter 8 Solutions
EBK MODERN PRINCIPLES OF ECONOMICS
Ch. 8 - Prob. 1FTCh. 8 - Prob. 2FTCh. 8 - Prob. 3FTCh. 8 - Prob. 4FTCh. 8 - Prob. 5FTCh. 8 - Prob. 6FTCh. 8 - Prob. 7FTCh. 8 - Prob. 8FTCh. 8 - Prob. 9FTCh. 8 - Prob. 10FT
Ch. 8 - Prob. 11FTCh. 8 - Prob. 12FTCh. 8 - Prob. 13FTCh. 8 - Prob. 14FTCh. 8 - Prob. 1TPSCh. 8 - Prob. 2TPSCh. 8 - Prob. 3TPSCh. 8 - Prob. 4TPSCh. 8 - Prob. 5TPSCh. 8 - Prob. 6TPSCh. 8 - Prob. 7TPSCh. 8 - Prob. 8TPSCh. 8 - Prob. 9TPSCh. 8 - Prob. 10TPSCh. 8 - Prob. 11TPSCh. 8 - Prob. 12TPSCh. 8 - Prob. 13TPSCh. 8 - Prob. 14TPSCh. 8 - Prob. 15TPSCh. 8 - Prob. 16TPSCh. 8 - Prob. 17TPSCh. 8 - Prob. 1CCh. 8 - Prob. 2CCh. 8 - Prob. 3CCh. 8 - Prob. 4CCh. 8 - Prob. 5CCh. 8 - Prob. 6C
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