If the demand shifts outward and the supply shifts outwardthe new equilibrium quantity will be higher, but the direction of the change inthe equilibrium price is ambiguous.the new equilibrium price will be higher, but the direction of the change in thequantity is ambiguous.in the new equilibrium, the price will be higher but the quantity will be lower.in the new equilibium, the quantity will be higher but the price will be lower.in the new equilibrium, both price and quantity will be higher.

In a market, simultaneous changes in demand and supply will affect the market equilibrium largely as…

Answered: If the demand shifts outward and the…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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Use the diagram below to answer the question. The diagram depicts an increase in the demand for wine, following research reports highlighting the benefits of its consumption to one's health. If at the same time there were a strike by workers on wine farms, then in comparison with the original equilibrium EO, there would be P O Price of wine So Eo X Quantity of wine O A. an increase in equilibrium quantity but a decrease in price. O B. an increase in equilibrium price and quantity. Do O C. an increase in equilibrium price but an indeterminate effect on quantity. O D. a decrease in equilibrium quantity but an increase in price. D₁ Q
Equilibrium price = 54.48 dollarsEquilibrium quantity = 2.89find answer of 2nd box and 3rd

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