Answered: Suppose consumers decide that…

Suppose consumers decide that pistachios provide more nutritional benefits. This changes the quantities demanded of almonds by 400. What is the new market equilibrium price and quantity ?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 20AA

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Concept explainers

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

Suppose consumers decide that pistachios provide more nutritional benefits. This changes the quantities demanded of almonds by 400.

What is the new market equilibrium price and quantity ?

Market for Almonds
Price ($/pound)
Quantity Demanded
Quantity Supplied
13
1600
1200
14
1500
1300
15
1400
1400
16
1300
1500
17
1200
1600
18
1100
1700

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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