Question

g suppose the market for almonds is unregulated. in other words, the price of almonds can adjust freely based on supply and demand forces. if a shortage exists in the almond market, then the current price must be lower than the equilibrium price. for equilibrium to be reached in the market, you would expect sellers to offer lower prices .

Answer 1

When a shortage exists in the market for a product such as almonds, sellers will likely increase prices to reach the equilibrium price where quantity demanded equals quantity supplied, thereby resolving the shortage.

Step-by-step explanation:

The concept of equilibrium price is a fundamental principle in economics, referring to the price at which the quantity demanded by consumers equals the quantity supplied by producers. When the market for a good, such as almonds, is unregulated, if there is a shortage, this indicates that the current price is below the equilibrium price. In this scenario, there is excess demand; more consumers are willing to purchase the good at the low price than the quantity producers are willing to supply.

To reach equilibrium, contrary to what the student initially believed, sellers would increase their prices rather than offering lower prices. This price adjustment process continues until the market reaches a new equilibrium where the quantity demanded equals the quantity supplied. As an example, if the equilibrium price of coffee is $4 and sellers attempt to sell it for $2, they will face a shortage as demand will exceed supply.

In summary, when a shortage occurs in an unregulated market, it encourages producers to raise prices to eliminate the excess demand and bring the market back to equilibrium.

Answer 2

if a shortage exists in the almond market, then the current price must be lower than the equilibrium price. for equilibrium to be reached in the market, you would expect buyers to offer higher prices.