Question

Suppose the market for cantaloupes is unregulated. That is, cantaloupe prices are free to adjust based on the forces of supply and demand.

If a shortage exists in the cantaloupe market, then the current price must be (higher or lower)? than the equilibrium price. For the market to reach equilibrium, you would expect (persistent excess demand, seller to offer lower prices, or buyers to offer higher prices)?

Answer 1

Buyers to offer a higher price

Step-by-step explanation:

In an unregulated market, when there is persistence excess demand for foods and services, prices become extremely high, hence, buyers offer to buy at a higher price.

Answer 2

higher

buyers to offer higher prices

Step-by-step explanation:

When there's a shortage in the market, demand exceeds supply. A shortage can be caused either by an increase in demand or a fall in supply. When there's a shortage prices rise.

To curb the shortage, buyers would offer an higher price. This would either increase supply or decrease demand and equilibrium would be restored.

I hope my answer helps you.