At prices below the equilibrium price, the quantity demanded is ____ than the quantity suplied, and there is a(n)____ on the price.
Assume a world of two goods, beef and cars; and two countries South Africa and Botswana. Cars are capital intensive and Botswana is labour abundant. Assume the standard H-O assumptions hold. According to the Rybczynski theory, if labour doubles in Botswana how does production and consumption compare to pre- growth conditions in Botswana? Explain with the relevant diagram.
explain the kinked deman curve theory of an oligopoly. include in your aswer a discussion of a contempory oligopoly