Which of the following is an example of a temporary price differential in a resource market?
A)land downtown is more expensive than land in the suburbs
B)a superstar professional basketball player is paid more than the average professional player
C)cable television installers have a higher wage than telephone installers
D)an airline pilot is paid more than a flight attendant
E)a worker in a toxic waste plant earns more than a teacher

Question

Quizplus · Accepted Answer

Temporary price differentials refer to short-term fluctuations in wages or prices due to changes in supply or demand. Cable television installers may have a higher wage than telephone installers because there is currently a higher demand for cable installations. However, this may change in the future as technology advances and demand shifts. The other options cited in the question (A, B, D, E) are not necessarily temporary and may be driven by more long-term factors such as location, skill level, or societal values.

Which of the Following Is an Example of a Temporary