Price Quantity Demanded Per Month $5 $4 $3 $2 $1 60 80 100 120 140 Quantity Supplied Per Month 200 150 100 50 0 The table above illustrates quantities supply and demanded for flashlights. Which of the following statements is true? a) The law of the demand does not hold for this market b) The law of the supply does not hold for this market c) The equilibrium price is $3 and the equilibrium quantity is 100 units Price Quantity Demanded Per Month d) The equilibrium price and quantity cannot be determined with a given information. Quantity Supplied
Price Quantity Demanded Per Month $5 $4 $3 $2 $1 60 80 100 120 140 Quantity Supplied Per Month 200 150 100 50 0 The table above illustrates quantities supply and demanded for flashlights. Which of the following statements is true? a) The law of the demand does not hold for this market b) The law of the supply does not hold for this market c) The equilibrium price is $3 and the equilibrium quantity is 100 units Price Quantity Demanded Per Month d) The equilibrium price and quantity cannot be determined with a given information. Quantity Supplied
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Price Quantity Demanded
Per Month
$5
$4
$3
$2
$1
60
80
100
120
140
The table above illustrates quantities supply and demanded for flashlights. Which of the
following statements is true?
Quantity Supplied
Per Month
a) The law of the demand does not hold for this market
b) The law of the supply does not hold for this market
$5
$4
$3
$2
$1
200
150
100
50
0
c) The equilibrium price is $3 and the equilibrium quantity is 100 units
d) The equilibrium price and quantity cannot be determined with a given information.
Price Quantity Demanded
Per Month
60
80
100
120
140
Quantity Supplied
Per Month
200
150
100
50
0
The table below illustrates quantities supply and demanded for flashlights. If the current
price is $2, then
a) The market is in equilibrium
b) There is a shortage and as a result the price will increase
c) There is a surplus and as a result the price will decrease
d) The market equilibrium quantity is 120 units
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