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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 1SCQ: Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher...

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al The dernand and supply schedules for wine are above. Plot both in a graph. Find the equilibrium price and quantity b) if the price of wine is currently $30, what is this situation called in the market? Plot this scenario in same graph in part (a) c) For part (b), how big is the gap between what consumers want and what suppliers want? d) What would eventually happen to price and quantity in the market in part (b)?