In Vernon Smith's Supply and Demand Lab Experiment

question 167

Multiple Choice

In Vernon Smith's supply and demand lab experiment:

• A) Smith knew the true demand and supply curves, but the subjects did not.
• B) the subjects did not know their own willingness to pay or sell.
• C) it took a long time to arrive at equilibrium.
• D) there were many unrealized gains from trade.

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Definitions:

Financial Assets

Economic resources or assets that are paper-based, including stocks, bonds, bank deposits, and other investments.

Monetary Value

The value of a good or service determined by the amount of money that it can be traded or sold for in a market.

Demographic Characteristics

Refers to the statistical data of a population that include age, race, gender, income, migration patterns, and population growth.

Poverty Rate

The percentage of the population living below the national poverty line, reflecting those who cannot meet basic needs for food, shelter, and clothing.