The short-run effect(s) of a market-driven change in the price of good X is/are

Question

The short-run effect(s) of a market-driven change in the price of good X is/are to: MSB- marginal social benefit; MPB marginal private benefit MSC marginal social cost; MPC marginal private cost O ration' out the amount available; eliminate/prevent shortages and surpluses. O cause the equilibrium to be the optimum. provide information to producers, especially, and incentives to respond appropriately. O eliminate differences between MSB and MPB: and between MSC and MPC. O none of the above QUESTION 30 The long-run effect(s) of a market-driven change in the price of good X is/are to: MSB marginal social benefit; MPB marginal private benefit MSC marginal social cost; MPC marginal private cost O ration' out the amount available; eliminate/prevent shortages and surpluses. O cause the equilibrium to be the optimum. provide information to producers, especially, and incentives to respond appropriately. O eliminate differences between MSB and MPB, and between MSC and MPCc. O none of the above

Explanation / Answer

Ans 29)

In Short run it is upper hand to producers in the form of private information hence they use it minding their benefits beneath

Hence option 3 is correct here

ANs 30)

As Long run progresses no information remains private and benefits /cost are shared between both parties which then converges to attain equilibrium

Hence option D is correct response

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