Exhibit 1 Price 10. Use Exhibit 1. For this given graph of a market, which of the following statements is (are) correct? (x) 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 (y) If the actual price was $12, there would be a shortage of 450 units and the price would rise to equilibrium at $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 $24 $18 $12 C. (x) and (z) only D. (y) and (z) only E. (z) only 150 300 450 600 750 900 Quantity
Exhibit 1 Price 10. Use Exhibit 1. For this given graph of a market, which of the following statements is (are) correct? (x) 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 (y) If the actual price was $12, there would be a shortage of 450 units and the price would rise to equilibrium at $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 $24 $18 $12 C. (x) and (z) only D. (y) and (z) only E. (z) only 150 300 450 600 750 900 Quantity
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 23QP
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Transcribed Image Text:Exhibit 1
Price
10. Use Exhibit 1. For this given graph of a market, which of the
following statements is (are) correct?
(x) 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
(y) If the actual price was $12, there would be a shortage of
450 units and the price would rise to equilibrium at $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
$24
$18
$12
C. (x) and (z) only
D. (y) and (z) only
E. (z) only
150 300 450 600 750 900
Quantity
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