Given these supply and demand relationships drawn, if the actual price is $14, which of the following statements are TRUE? At $14, the demand is 16 At $14, the quantity demanded is 16 The equilibrium quantity s 12 At $14, the quantity supplied is 16 The equilibrium quantity is 16 At $14, the supply is 16 The equilibrium price is $14 At $14, the quantity supplied is 9 At $14, the supply is 9 The equilibrium price is $17 At the equilibrium price supply and demand would be equal At a price of $17, the quantity demanded and quantity supplied would be equal At $14 there is a market shortage of 7 units At $14 there is a market shortage of 4 units At $14 there is a market surplus of 7 units. Supply and Demand are equal at P=17.
Given these
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At $14, the demand is 16 |
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At $14, the quantity demanded is 16 |
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The |
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At $14, the quantity supplied is 16 |
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The equilibrium quantity is 16 |
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At $14, the supply is 16 |
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The |
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At $14, the quantity supplied is 9 |
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At $14, the supply is 9 |
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The equilibrium price is $17 |
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At the equilibrium price supply and demand would be equal |
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At a price of $17, the quantity demanded and quantity supplied would be equal |
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At $14 there is a market shortage of 7 units |
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At $14 there is a market shortage of 4 units |
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At $14 there is a market surplus of 7 units. |
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Supply and Demand are equal at P=17. |
In the above diagram, we can see that when the price is $14, the quantity demanded is 16 and the quantity supplied is 9. If the price is $14, there is a shortage of 7 units as the quantity demanded is greater than the quantity supplied that implies consumers are willing to buy but the suppliers are not able to supply the demanded quantity. Now, equilibrium is achieved when the quantity demanded is equal to the quantity supplied. In the above diagram, when the demand curve intersects the supply curve at point e. At equilibrium, the price is $17 and the equilibrium quantity is 12.
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