Supply and demand-end of chapter problem

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Supply and Demand - End of Chapter Problem

In the United States, the biggest shopping day each year is "Black Friday," the day after Thanksgiving. Every Black Friday, the local branch of a major retailer makes this offer to the public: the first 100 54-inch HD flat-screen televisions sold will sell at the discounted price of $50 each. Customers line up before the store opens its doors to take advantage of this tremendous bargain.

a. In this scenario, what is the "price" of a 54-inch flatscreen television?

The "price" is $100, not the discounted sticker price of $50.

The "price" is the sticker price plus the value of the time a customer must spend waiting in line.

The "price" is the value of the time a customer must spend waiting in line.

The "price" is the sticker price of $50.

b. Suppose the retailer offers the first 500, instead of the first 100, televisions at $50 apiece. In this scenario, the "price" _________________.

c. Now Suppose the retailer offers the first 50, instead of the first 100, televisions at $50 apiece. In this scenario, the "price" _________________.

Reference no: EM132484654

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