Suppose the equilibrium price of yoghurt is $10, and the equilibrium quantity is 12 units. If the price of yoghurt is $12:there will be a shortage of yoghurt.there will be an excess supply of yoghurt.the market will be in equilibrium.the quantity demanded of yoghurt will be greater than 12 units.

When the market is in equilibrium, demand is equal to supply and there is no shortage or excess…

Answered: Suppose the equilibrium price of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the supply of nails shown in Figure 2. The initial supply of nails is S (in black), the initial price of a pound of nails is $12, and the initial quantity supply of nails is 40K pounds. Which of the following correctly describes the effect of an INCREASE in the supply of nails while the price of a pound of nails remains at $12? A) The supply curve shifts right to S' (in blue), and the quantity supply of nails remains at 40K pounds. B) The supply curve shifts right to S' (in blue), and the quantity supply of nails increases to 55K pounds. C) The supply curve remains at S (in black), and the quantity supply of nails remains at 40K pounds. D) The supply curve remains at S (in black), and the quantity supply increases to 55K pounds.
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