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10. Use Exhibit 1. For this given graph of a market, which of the following statements is (are) correct? (✗) An increase in supply would cause a surplus and, as a result, the price would fall below $18 and the new equilibrium quantity would be in excess of 600 units Exhibit 1 Price $24 (y) If the actual price was $12, there would be a shortage of 450 units and the price would rise to equilibrium at $18. $18 (z) A decrease in demand would cause a surplus at the price of $18 and the quantity sold would decrease to an equilibrium amount that is less than 600 units. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only $12 150 300 450 600 750 900 Quantity

10. Use Exhibit 1. For this given graph of a market, which of the following statements is (are) correct? (✗) An increase in supply would cause a surplus and, as a result, the price would fall below $18 and the new equilibrium quantity would be in excess of 600 units Exhibit 1 Price $24 (y) If the actual price was $12, there would be a shortage of 450 units and the price would rise to equilibrium at $18. $18 (z) A decrease in demand would cause a surplus at the price of $18 and the quantity sold would decrease to an equilibrium amount that is less than 600 units. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only $12 150 300 450 600 750 900 Quantity

ECON MACRO
ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter4: Demand, Supply, And Markets
Section: Chapter Questions
Problem 3.4P
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10. Use Exhibit 1. For this given graph of a market, which of the following statements is (are) correct? (✗) An increase in supply would cause a surplus and, as a result, the price would fall below $18 and the new equilibrium quantity would be in excess of 600 units Exhibit 1 Price $24 (y) If the actual price was $12, there would be a shortage of 450 units and the price would rise to equilibrium at $18. $18 (z) A decrease in demand would cause a surplus at the price of $18 and the quantity sold would decrease to an equilibrium amount that is less than 600 units. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only $12 150 300 450 600 750 900 Quantity
Transcribed Image Text:10. Use Exhibit 1. For this given graph of a market, which of the following statements is (are) correct? (✗) An increase in supply would cause a surplus and, as a result, the price would fall below $18 and the new equilibrium quantity would be in excess of 600 units Exhibit 1 Price $24 (y) If the actual price was $12, there would be a shortage of 450 units and the price would rise to equilibrium at $18. $18 (z) A decrease in demand would cause a surplus at the price of $18 and the quantity sold would decrease to an equilibrium amount that is less than 600 units. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only $12 150 300 450 600 750 900 Quantity
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