Question

The equilibrium price for Gizmos Puzzle Toys is $12, but Gizmos are currently priced at $10 throughout the market. In the typical store that sells Gizmos, we might expect

a.the shelf of available Gizmos is often empty
b.the shelf of available Gizmos is always full or overflowing
c.Equilibrium will mean the store has a surplus of legos
d.equilibrium has nothing to do with how many Gizmos the store sells

Answer 1

The shelf of available Gizmos is often empty.

Step-by-step explanation:

The correct answer is a. the shelf of available Gizmos is often empty. In the market for Gizmos Puzzle Toys, the equilibrium price is $12, but the current market price is $10. This means that the price of Gizmos is below the equilibrium price. When the price is below the equilibrium, the quantity demanded exceeds the quantity supplied, leading to a shortage. As a result, the shelf of available Gizmos is often empty because there is more demand than supply.