Mark, the business head of a firm, wanted to give New Year’s gifts to his employees. He discussed this with his employees and decided to give leather computer bags. Mark stated that he did not want to give cheap bags, while a few employees said that they did not want exorbitantly priced designer name bags. Identify the step of added-value negotiation used in this situation.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Alocal barnes and noble bookstore ordered 80 marketing books but received 60 books. what percent of the order was missing?

Post test question number 9 for entering the job market