PRINCIPLES OF MACROECONOMICS
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A. Market equilibrium requires that other influences other than price be held constant. Why might the existence of social and political forces violate this condition and make equilibrium difficult to achieve?
B. Do you think consumers make purchasing decisions based on general rules of thumb, such as “you get what you pay for” and “follow the leader,” instead of price? Why or why not?
C. What implications do you think purchases made by rules of thumb have on how markets work? (Consider how following rules of thumb might affect demand and thus prices.)
Copied & Paraphrased from Colander Microeconomics (2010)
NOTE: Response must be no more than 5-7 complete, non-compound sentences for each part in three paragraphs, one paragraph for each part. Subsequent responses must be no more than 10 complete, non-compound sentences. Responses must be in your own words with proper citations for all sources used (including the textbook).
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