Consider a market for socks in which the market demand is given by the equation QD = 40-2.5P and market supply is given by the equation QS = 1.5P + 18. If there is an increase in the supply by 6 units in the market, the new price must be. O a. $2 O b. $6 O c. $4 O d. $10

Consider a market for socks in which the market demand is given by the equation QD = 40-2.5P and market supply is given by the equation QS = 1.5P + 18. If there is an increase in the supply by 6 units in the market, the new price must be. O a. $2 O b. $6 O c. $4 O d. $10

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 18P: Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose...

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Question

Consider a market for socks in which the market demand is given by the equation QD
= 40 - 2.5P and market supply is given by the equation QS = 1.5P + 18. If there is an
increase in the supply by 6 units in the market, the new price must be
%3D
a. $2
O b. $6
O c. $4
O d. $10
$8

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