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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

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 21P
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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
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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