1st Question
If a price is above the equilibrium price, explain the forces that bring the market back to the equilibrium price and quantity. If a price is below the equilibrium price, explain the forces that bring the market back to the equilibrium price and quantity.
2nd Question
What would be the effect of each of the following on the supply of salsa in the United States? In each case, identify the responsible determinant of supply?
a. Tomato prices skyrocket.
b. Congress places a 26 percent tax on salsa.
c. Ed Scissorhands introduces a new, faster vegetable chopper.
d. J. Beyonce, and Adam Sandler each introduce a new brand of salsa