Question

Excess availability of empty parking spots near the stadium during a popular college football game indicates that the parking market _____ in an equilibrium and _____ to restore the equilibrium.Please choose the correct answer from the following choices, and then select the submit answer button.a. is; nothing needs to be doneb. is not; the parking fees need to be increasedc. is not; the parking fees need to be loweredd. is; the parking fees need to be lowered

Answer 1

Answer:

Option (c) not; the parking fees need to be lowered

Explanation:

The market equilibrium is a state of the market when the supply and the demand are equal.

Here in the given question, it is given that a popular college football match is going which means there is a huge number of fans and audience is available which means more number of cars which ultimately means the more demand for the parking.

But the parking are empty that means the equilibrium is not established,

therefore the prices are needed to be lowered in order to attract more cars so that the demand and supply can maintain an equilibrium.