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Despite the theory of how prices are determined in a competitive market, queues exist in a variety of settings. One reason for this could be demand uncertainty - it is difficult for sellers to predict how much demand there is for their products.
a. Can you give an example of a good where demand is highly uncertain (or highly volatile)?
b. Why do you think demand uncertainty can explain why queues exist?
c. One argument for why queues exist for turf is that they are highly perishable; i.e. the product goes to waste if it is not sold on the day. Why do you think a perishable good is more likely to result in queues?
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