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Angela and Theresa visit a sporting goods store to buy a new set of golf clubs. Angela is willing to pay up to $750 for
Angela and Theresa visit a sporting goods store to buy a new set of golf clubs. Angela is willing to pay up to $750 for the golf clubs, Theresa is willing to pay up to $850. The price is $575, unfortunately, there is only one set of golf clubs available at the moment! The efficient allocation of resources is when
Theresa buys the golf clubs | ||
Neither Theresa nor Angela buys the golf clubs | ||
Angela buys the golf clubs | ||
No efficient allocation is possible at P = $575 because at this price quantity demanded is greater than quantity supplied. | ||
Either Theresa or Angela buys the golf clubs |
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