Intro to market desgin

Question 1

What is the goal of the market

Answer 1

To determine who gets what

Question 2

What is equilibrium

Answer 2

it’s whenever there’s a consensus between buyer and a seller on a price

Question 3

What are the particularities of different markets and their rules

Answer 3

1- Buyers and sellers do not only care about what they are selling/buying they also care with who they make the transaction

2- College and students have preferences, its not only the tuition the equilibrium

3- We can conclude that price may be enough but in some cases its not enough to have an equilibrium

Question 4

What does a market need to work

Answer 4

1. Market congestion: enough actors from both sides
2. Avoid congestion