What condition causes a secondary market to arise?
Please provide the best answer for the statement.
A secondary market arises when there is a shortage in the primary market of a certain good. When a set price is below the equilibrium price, initial purchasers will enter into a secondary market and sell the good to consumers willing to pay a price higher than the set price and the market will ultimately reach equilibrium.
You might also like to view...
The government deficit does NOT place a burden on future generations when
A) taxes are eventually raised to pay interest on the additional debt. B) the borrowed funds are used for productive government investment. C) borrowing from foreigners offsets the deficit, so that private investment is not crowded-out. D) the borrowed funds are transferred to the purchase of nondurable consumer goods.
Which of the following is true?
a. If the consumer is a buyer of several units of a good, the earlier units will have greater marginal value and therefore create more consumer surplus, because marginal willingness to pay falls as greater quantities are consumed in any period. b. When some units of output can be produced at a cost that is lower than the market price, the seller receives a surplus, or net benefit, from producing those units. c. At the market equilibrium both consumers and producers benefit from trading every unit up to the market equilibrium output. d. All of the above are true.
The sum of MPC and the MPS must equal 1 because
What will be an ideal response?
To assess the benefit of a product never consumed, the brain bases its benefit valuation on:
A. chance. B. past experiences with similar products. C. the cost of the product. D. The brain cannot value the benefit of a product never consumed.