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Suppose there is an excess demand for cell phones. In a market without price controls market pressures will cause the price of cell phones to ____ until it reaches the equilibrium price

2 Answers

4 votes

Answer:

Explanation:

rise/increase/grow

User Bubuxu
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3 votes

Answer:

Explanation:

The key word is increase.

People who don't have a cell phone will bid the price up until some of the people wanting a cell drop out of the bidding. Then only those willing to pay a higher price will be left to buy the cell at a much higher price than was initially thought to be the right price.

Phew. Try reading that sentence a couple of times. It's right, but there should be an easier way to say it.

User ZektorH
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