1. Who benefits when a customer purchases strawberries from a store?

2. What is the ideal result of voluntary exchange?

3. What happens to demand if prices go up?

4. How can weather impact the supply of strawberries?

5. When is the market approach to supply and demand not practical?

6. Can unregulated free markets create problems? Give 1 examples

Answers with Explanations:

1. Who benefits when a customer purchases strawberries from a store?

When a customer purchases strawberries from a store, the strawberry-seller and the customer both benefit from the transaction. The strawberry-seller earns profit from selling his goods while the customer is able to eat the strawberry.

2. What is the ideal result of voluntary exchange?

The ideal result of voluntary exchange is that, both sellers and buyers are engaging in market transactions according to their own free will. This means that both parties are doing the transaction, so they can both have an advantage. So, this is a win-win situation for both.

3. What happens to demand if prices go up?

If prices of products or services go up, demand decreases. This is because the consumers or customers cannot afford the product or service. This is true provided that all other things are equal.

4. How can weather impact the supply of strawberries?

Weather conditions can largely affect the supply of strawberries. Since strawberries grow in cool to warm weathers, having a condition that is too cold or too hot will prevent the crops from growing. This will decrease the supply of strawberries.

5. When is the market approach to supply and demand not practical?

The market approach to supply and demand is not practical when it comes to emergency situations, such as having firefighters or police officers. The number of fire fighters and police officers being hired do not rely on the number of crimes or fire happening in the country. They are particularly used in order to maintain peace and order.

6. Can unregulated free markets create problems? Give 1 example.

Unregulated "free market" refers to a market wherein the supply and demand is not being controlled or maintained. It largely depends on the sellers and consumers, without the strict interference of any law.

Such kind of market can create many problems, such as the seller's self-interest in gaining more profit. This will lead to "deception" and "manipulation." For example, it becomes easy for the seller to sell a particular good 10 times its actual cost, since there are no restrictions.