Understand and Describe What Happens When a Market Is Not

Essay

Understand and describe what happens when a market is not in equilibrium.
-Use price elasticity to explain the following observations:
a. The price of gasoline is higher near the freeway than at a gas station two miles off the freeway.
b. Airline tickets are less expensive if purchased a month before you plan to fly than if purchased one day before you plan to fly.
c. Prices in grocery stores in low-income areas of town might actually be higher than in a more affluent area of town.