Market Competition and Equilibrium

What does the highlighted row show?

• Market Equilibrium

• Surplus

• Shortage

What does the highlighted row show?

• Market Equilibrium

• Surplus

• Shortage

What does the highlighted row show?

• Market Equilibrium

• Surplus

• Shortage

What is the market equilibrium price?

• $8.99

• $2.99

• $5.99

• none of the above

Lyndsey and Tas both have lemonade stands in their neighborhood. They want to attract more customers.

Lyndsey starts by selling a cup of lemonade for $1.

1. Tas wants to get more customers, so he lowers his price to 75 cents per cup.

2. In response, Lyndsey decides to lower her price to 50 cents.

3. Tas then reduces his price to 40 cents.

What kind of competition is this?

• Price Competition

• Non-Price Competition

Aubrie and Lulu both open food trucks to sell delicious tacos.

In order to attract more customers, Lulu expands her menu to include nachos.

Aubrie installs speakers on her truck to play fun music for her customers while they eat.

Lulu creates a special taco that features her family's amazing secret recipe.

Aubrie sets up a toppings bar where customers can make their own tacos.

What sort of competition is this?

• Price Competition

• Non-Price Competition

What is a market?

• A market is a place where people go to watch movies.
• A market is a place where buyers and sellers come together to exchange goods, services, and/or resources.

• A market is a place where people go to exercise.

What is competition in business?

• Competition is companies working together to acheive the same goal.

• Competition is companies working against each other to attract more customers.

• Competition is companies coming together to form larger companies.

At which price is there a surplus?

• $7.99

• $5.99

• $3.99

• $2.99

At which price is there a shortage?

• $7.99

• $5.99

• $3.99