Homework Help is Here – Start Your Trial Now!
Business
Economics
Referring to the market graph above, if the price was set at $5000 a... of.... units would exist a. shortage,5 b. surplus, 5 c. shortage,2 d. surplus,2

Referring to the market graph above, if the price was set at $5000 a... of.... units would exist a. shortage,5 b. surplus, 5 c. shortage,2 d. surplus,2

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

Referring to the market graph above, if the price was set at $5000 a... of.... units would exist

a. shortage,5

b. surplus, 5

c. shortage,2

d. surplus,2

**Graph Description:** The graph represents a market with supply and demand curves. It is plotted with price on the vertical axis ranging from $0 to $9,000 and quantity on the horizontal axis from 0 to 9 units. - **Supply Curve (S):** An upward sloping line from left to right. - **Demand Curve (D):** A downward sloping line from left to right. The supply and demand lines intersect at the equilibrium point. The demand line starts high on the left ($8,000) and slopes downward, while the supply line starts low on the left ($1,000) and slopes upward. **Question:** Referring to the market graph above, if the price was set at $5,000 a _________ of _________ units would exist. - ○ shortage; 5 - ○ surplus; 5 - ○ shortage; 2 - ○ surplus; 2 **Answer Explanation:** At a price of $5,000: - The quantity supplied is at 5 units. - The quantity demanded is at 3 units. Thus, there is a surplus of 2 units at this price point.
Transcribed Image Text:**Graph Description:** The graph represents a market with supply and demand curves. It is plotted with price on the vertical axis ranging from $0 to $9,000 and quantity on the horizontal axis from 0 to 9 units. - **Supply Curve (S):** An upward sloping line from left to right. - **Demand Curve (D):** A downward sloping line from left to right. The supply and demand lines intersect at the equilibrium point. The demand line starts high on the left ($8,000) and slopes downward, while the supply line starts low on the left ($1,000) and slopes upward. **Question:** Referring to the market graph above, if the price was set at $5,000 a _________ of _________ units would exist. - ○ shortage; 5 - ○ surplus; 5 - ○ shortage; 2 - ○ surplus; 2 **Answer Explanation:** At a price of $5,000: - The quantity supplied is at 5 units. - The quantity demanded is at 3 units. Thus, there is a surplus of 2 units at this price point.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Equilibrium Point
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS