http://www.youtube.com/watch?v=m0TUZbI5vew
The first scenario portrays a shortage in the market, there is an excess in demand. It is usable in the part which shows a limited supply and many buyers. As a result, the price goes higher until they reach the equilibrium price where the quantity demanded equals the quantity supplied.
The second scenario shows a perfectly competitive market, in which many sellers sell homogenous products specifically chicken. Sellers sell their products at a different price. The market is perfectly competitive because there are many sellers and buyers and the change in price has a negligible effect on the market.
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Congratulations for a good performance!
ReplyDeleteThis does not explain the entire role play.
The content is insufficient.