ECN
ECN220_Dowell_Week2_Assignment.docx

40 units the price will rise 5 if the price of

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Shortage; 70 – 30 = 40 units, the price will rise 5. If the price of bicycles were $400, is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to rise or fall? Surplus, 60 – 40 = 20 units, the price will fall (This next part should be about 150 words.) 2. Please share 2 or 3 experiences in your life when you either benefited from the oversupply (think sales and discounts) of a product or when you had to pay more for a product because it was in high demand. Please make your comments about 150 words. I can mostly think of the times I have went to grocery stores and the fresh produce when in season are usually oversupplied. For example, strawberries; this year there has been an overabundance of strawberries and I have been able to buy a quart for $2 instead of $4.99, regular price. However, when I do try to find specific spice, some are difficult to find and are much more expensive. Vanilla beans are most definitely one of the quite scarce resource and takes a long time to make. Three single vanilla beans can cost upwards of $15, especially if you desire organic type. One thing I have noticed that is always the same price and almost never changes, rice. Simple plain dried white rice for a pound is only $1.50 almost all the time. This indicates that supply of rice is quite abundant and very readily available along with the equilibrium price lock. This is the three experiences that I can think of that fits in with this question.
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