Asked by Chris Huynh on Apr 25, 2024
Related to the Economics in Practice on page 79: If a hurricane results in the supply of hotel rooms decreasing and the demand for hotel rooms increases, the equilibrium price for hotel rooms ________ and the equilibrium quantity of hotel rooms ________.
A) will increase; will decrease
B) will increase; may increase, decrease, or stay the same
C) may increase, decrease, or stay the same; will decrease
D) may increase, decrease, or stay the same; may increase, decrease, or stay the same
Equilibrium Price
The market-clearing price where the intentions of buyers and sellers match, leading to an optimal distribution of goods and services.
Equilibrium Quantity
The quantity of goods or services supplied is exactly equal to the quantity demanded at the market price.
Hotel Rooms
Units of accommodation provided by hotels for guests, typically including a bed and bathroom and varying in size and amenities.
- Understand the impact of government-enforced price restrictions on the balance between market supply and demand.
- Examine the effect of market behavior on the determination of prices and the distribution of resources.
Learning Objectives
- Understand the impact of government-enforced price restrictions on the balance between market supply and demand.
- Examine the effect of market behavior on the determination of prices and the distribution of resources.