Select the correct statements. Select one or more: a. In a labor market where th

Question

Select the correct statements.

Select one or more:

a. In a labor market where there is unemployment, the workers are on the short side of the market.

b. My friends and I were willing to buy tickets for a Bruce Springsteen concert that will take place in Northampton next year. But by the time we decided to go, the tickets were sold out. The concert organizers are therefore on the short side of the market.

c. Given the market price, the short side of the market is the side -- either supply or demand -- that is willing to make less transactions at that price.

d. Given the market price, the long side of the market is the side -- either supply or demand -- that is willing to make less transactions at that price.

e. It is the short side of the market that determines the quantity transacted.

f. If you buy a home just to resell it immediately, you are on the short side of the housing market. If, instead, you buy a home and keep it for many decades, then you are on the long side of the housing market.

Explanation / Answer

Short side of the market is that side of the market which restricts the quantity. When there is excess supply, the consumers are on short side and when there is excess demand the producers are on teh short side.

Ans.

b. My friends and I were willing to buy tickets for a Bruce Springsteen concert that will take place in Northampton next year. But by the time we decided to go, the tickets were sold out. The concert organizers are therefore on the short side of the market.

c. Given the market price, the short side of the market is the side -- either supply or demand -- that is willing to make less transactions at that price.

e. It is the short side of the market that determines the quantity transacted.

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