It often appears as if there are "too few" workers at the Department of Motor Vehicles (DMV)to service all of its customers at a given point in time.Based on one of theories discussed in the textbook,this is probably because
A) the equilibrium "price" to be served by the DMV is lower than the "price" charged customers.
B) the equilibrium "price" to be served by the DMV is higher than the "price" charged customers.
C) the equilibrium "price" to be served by the DMV minus the "price" charged to customers is zero.
D) b and c
E) none of the above

Question

Quizplus · Accepted Answer

The correct answer is based on the concept of supply and demand. When the equilibrium price to be served by the DMV is higher than the price charged to customers (which could be considered as the cost of waiting time, fees, etc.), it indicates that the demand for DMV services exceeds the supply at that price point. This results in longer wait times and the perception of there being "too few" workers to meet the demand.

It Often Appears as If There Are "Too Few" Workers