If the Equilibrium Price of an Hour with a Personal

question 140

Multiple Choice

If the equilibrium price of an hour with a personal trainer is $45 and the market price is currently $55,then there is

• A)a surplus of personal trainers
• B)a shortage of personal trainers
• C)equilibrium

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Definitions:

Maximin Strategy

In game theory, a strategy chosen to maximize the minimum gain that can be earned.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.

Price-Leadership Model

A market situation where one dominant company sets the price of goods or services within an industry and other companies follow suit.

Nash Equilibrium

In game theory, the result of all players’ playing their best strategy given what their competitors are doing.