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Price (P) S1 P2 D Q, Quantity (Q) In the diagram above, once the curve has shifted, there would be a(n) at the original price P1. Select one: a. shift in demand b. equilibrium c. shortage O d. surplus

Price (P) S1 P2 D Q, Quantity (Q) In the diagram above, once the curve has shifted, there would be a(n) at the original price P1. Select one: a. shift in demand b. equilibrium c. shortage O d. surplus

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In the diagram above, once the curve has shifted, there would be a(n) _________ at the original price P1. Diagram Explanation: - The graph displays a supply and demand model with Price (P) on the vertical axis and Quantity (Q) on the horizontal axis. - The initial supply curve is labeled as \( S_1 \), and the demand curve is labeled as \( D \). - The original equilibrium is where \( S_1 \) and \( D \) intersect, at price \( P_1 \) and quantity \( Q_1 \). - A shift of the supply curve leftward is indicated by a new curve, also labeled \( S_1 \). - After the shift, the new intersection point is at price \( P_2 \) and quantity \( Q_2 \). - At the original price \( P_1 \), the new quantity supplied is less than the quantity demanded, indicating a shortage. Select one: - a. shift in demand - b. equilibrium - c. shortage - d. surplus
Transcribed Image Text:In the diagram above, once the curve has shifted, there would be a(n) _________ at the original price P1. Diagram Explanation: - The graph displays a supply and demand model with Price (P) on the vertical axis and Quantity (Q) on the horizontal axis. - The initial supply curve is labeled as \( S_1 \), and the demand curve is labeled as \( D \). - The original equilibrium is where \( S_1 \) and \( D \) intersect, at price \( P_1 \) and quantity \( Q_1 \). - A shift of the supply curve leftward is indicated by a new curve, also labeled \( S_1 \). - After the shift, the new intersection point is at price \( P_2 \) and quantity \( Q_2 \). - At the original price \( P_1 \), the new quantity supplied is less than the quantity demanded, indicating a shortage. Select one: - a. shift in demand - b. equilibrium - c. shortage - d. surplus
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