If the world price is greater than $120, does this create a shortage or surplus of contact lenses in the domestic market? PS- Graph shown is for contact lenses Idk what would the right answer is? VivanDomestic Market: No TradeNo International TradeOkay, so if the world price - the price you can getfor a box of your contact lenses -- is greater thanthe domestic equilibrium price of $120, will youincrease or decrease your quantity supplied ofcontact lenses?240Julio200160Like other domestic contact lensmanufacturers, we will increase our quantitysupplied.120-80Vivan40That is correct!4080120160200240• Quantity Supplied - Quantity DemandedНаpруDomestic MarketEconomicPriceQuantity SuppliedQuantity Demandeds Mentor240If the world price is greater than $120, does thiscreate a shortage or surplus of contact lenses inthe domestic market?202022040402006060180Julio8080160100100140120120120140140100It creates a surplus – the domestic quantity supplied will be greater than thedomestic quantity demanded.1601608018018060It creates a shortage -- the domestic quantity demanded will be greater than thedomestic quantity supplied.2002004022022020240240

Answered: If the world price is greater than…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the world price is greater than $120, does this create a shortage or surplus of contact lenses in the domestic market?

PS- Graph shown is for contact lenses

Idk what would the right answer is?

Vivan
Domestic Market: No Trade
No International Trade
Okay, so if the world price - the price you can get
for a box of your contact lenses -- is greater than
the domestic equilibrium price of $120, will you
increase or decrease your quantity supplied of
contact lenses?
240
Julio
200
160
Like other domestic contact lens
manufacturers, we will increase our quantity
supplied.
120-
80
Vivan
40
That is correct!
40
80
120
160
200
240
• Quantity Supplied - Quantity Demanded
Наpру
Domestic Market
Economic
Price
Quantity Supplied
Quantity Demanded
s Mentor
240
If the world price is greater than $120, does this
create a shortage or surplus of contact lenses in
the domestic market?
20
20
220
40
40
200
60
60
180
Julio
80
80
160
100
100
140
120
120
120
140
140
100
It creates a surplus – the domestic quantity supplied will be greater than the
domestic quantity demanded.
160
160
80
180
180
60
It creates a shortage -- the domestic quantity demanded will be greater than the
domestic quantity supplied.
200
200
40
220
220
20
240
240

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Surplus occurs when the supply of goods is more than the demand for goods. On the contrary, shortage occurs when the supply of goods is less than the demand for goods.

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