Mary owns a mobile boutique. Several of her local competitors have recently closed their businesses, which has resulted in a shift in her perceived demand curve. The following tables show her old and her new perceived demand. Original Demand Curve Price Quantity TC $20 0 $1,000 $18 100 $1,100 $16 200 $2,000 $14 300 $4,000 $12 400 $7,000 New Demand Curve Price Quantity TC $25 0 $1,000 $23 100 $1,100 $21 200 $2,000 $19 300 $4,000 $17 400 $7,000 How much does Mary's price change after her competitors leave the market? Question 21 options: decrease by 3 increase by 3 increase by 4 decrease by 4
Mary owns a mobile boutique. Several of her local competitors have recently closed their businesses, which has resulted in a shift in her perceived demand curve. The following tables show her old and her new perceived demand. Original Demand Curve Price Quantity TC $20 0 $1,000 $18 100 $1,100 $16 200 $2,000 $14 300 $4,000 $12 400 $7,000 New Demand Curve Price Quantity TC $25 0 $1,000 $23 100 $1,100 $21 200 $2,000 $19 300 $4,000 $17 400 $7,000 How much does Mary's price change after her competitors leave the market? Question 21 options: decrease by 3 increase by 3 increase by 4 decrease by 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Mary owns a mobile boutique. Several of her local competitors have recently closed their businesses, which has resulted in a shift in her perceived demand curve. The following tables show her old and her new perceived demand.
Original Demand Curve |
||
Price |
Quantity |
TC |
$20 |
0 |
$1,000 |
$18 |
100 |
$1,100 |
$16 |
200 |
$2,000 |
$14 |
300 |
$4,000 |
$12 |
400 |
$7,000 |
New Demand Curve |
||
Price |
Quantity |
TC |
$25 |
0 |
$1,000 |
$23 |
100 |
$1,100 |
$21 |
200 |
$2,000 |
$19 |
300 |
$4,000 |
$17 |
400 |
$7,000 |
How much does Mary's price change after her competitors leave the market?
Question 21 options:
|
decrease by 3 |
|
increase by 3 |
|
increase by 4 |
|
decrease by 4 |
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