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cos.8PalllyIS.COI. unnncs.gpalldiysis.l 3.8 If a market is in equilibrium, is it necessarily true that all buyers and sellers are satisfied with the market price? Briefly explain.
4.7 (Related to Solved Problem 3.4 on page 93) The demand for watermelons is highest during summer and lowest during winter. Yet watermelon prices are normally lower in summer than in winter. Use a demand and supply raph to demonstrate how this is possible. Be sure to care- fully label the curves in your graph and to clearly indicate the equilibrium summer price and the equilibrium winter price.
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Answer #1

3.8:-

If a market is in equilibrium, is it necessarily true that all potential buyers and sellers are satisfied with the market price? It is not true that all the firms will be satisfied with the current equilibrium price. The situation may be that a large dominant firm which controls a large share of the market supplies and the associated costs are lower than the firms with smaller share in the market and with higher costs The firms though are compelled to sell the product at the equilibrium price as they would lose whatever customers they have, if they sell at price above the equilibrium price. Consumers shift to the alternated seller who are selling at the equilibrium price

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