Author Question: If the price is above the equilibrium price, then there is a A) surplus, and market forces will ... (Read 60 times)

newyorker26 · **on:** Jun 29, 2018

If the price is above the equilibrium price, then there is a

A) surplus, and market forces will operate to lower price.
B) surplus, and market forces will operate to raise price.
C) shortage, and market forces will operate to lower price.
D) shortage, and market forces will operate to raise price.

Question 2

What is the difference between club goods and common pool resources? Cite one example of each type of good.

What will be an ideal response?

maaaaaaaaaa · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

Club goods are highly excludable but non-rival in consumption while common pool resources are non-excludable but rival in consumption. One example of a club good is pay-per-download Web sites and an example of a common pool resource is a natural lake.