- Why might diners at a restaurant more readily accept a coronavirus surcharge or fee than a simple increase in price?
- Why might some retailers keep prices low even when they recognize that their price is below the equilibrium price and a shortage exists?
Edward Millner's blog. It contains links to articles for students taking Principles of Microeconomics and Managerial Economics. It also contains links to articles about politics. The opinions here are mine. No one at VCU reviews or approves what I post.
Friday, May 29, 2020
Supply and demand works even (or especially) during pandemics
The coronavirus pandemic is affecting equilibrium prices in many markets (WSJ, May 2020). Here are two questions raised by the article.
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