Asked by abigail Gimbert on Jul 21, 2024
Verified
Around Easter time, the price of eggs rises. Some consumers complain about this and claim stores are 'price gouging.' Are there any positive functions played by the higher price of eggs around Easter? What would happen if the price of eggs were not permitted to rise by law?
Price of Eggs
The monetary cost required to purchase eggs, which can vary based on factors such as location, type of eggs, and market conditions.
Price Gouging
A situation where sellers increase the prices of goods, services, or commodities to a level much higher than is considered reasonable or fair, often during a crisis.
- Evaluate the impact of demand and supply shifts on the market's equilibrium state.
Verified Answer
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yanetsy yglesiasJul 22, 2024
Final Answer :
The price of eggs rises around Easter due to simple supply and demand. The positive side of this price increase is that it is what produces the increased quantity of eggs supplied to satisfy consumers around this time of year. If price were not permitted to rise, there would be a shortage of eggs around Easter..
Learning Objectives
- Evaluate the impact of demand and supply shifts on the market's equilibrium state.
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