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The diagram below shows the market for cooking oil. If the movement of the supply curve for S₁ to S2 took place, but the price failed to adjust to the new equilibrium, which one of the following would likely be witnesses in the market for product B? Price Demand P. P Q, Q₂ Quantity a) There will be an excess supply in the market b) There will be an excess demand in the market c) The new market price does not need to adjust, as the price can remain constant and the new market will still be in equilibrium d) The price is not a significant factor in determining the market equilibrium.

The diagram below shows the market for cooking oil. If the movement of the supply curve for S₁ to S2 took place, but the price failed to adjust to the new equilibrium, which one of the following would likely be witnesses in the market for product B? Price Demand P. P Q, Q₂ Quantity a) There will be an excess supply in the market b) There will be an excess demand in the market c) The new market price does not need to adjust, as the price can remain constant and the new market will still be in equilibrium d) The price is not a significant factor in determining the market equilibrium.

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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The diagram below shows the market for cooking oil. If the movement of the supply curve for S₁ to S2 took place, but the price failed to adjust to the new equilibrium, which one of the following would likely be witnesses in the market for product B? Price Demand P. P Q, Q₂ Quantity a) There will be an excess supply in the market b) There will be an excess demand in the market c) The new market price does not need to adjust, as the price can remain constant and the new market will still be in equilibrium d) The price is not a significant factor in determining the market equilibrium.
Transcribed Image Text:The diagram below shows the market for cooking oil. If the movement of the supply curve for S₁ to S2 took place, but the price failed to adjust to the new equilibrium, which one of the following would likely be witnesses in the market for product B? Price Demand P. P Q, Q₂ Quantity a) There will be an excess supply in the market b) There will be an excess demand in the market c) The new market price does not need to adjust, as the price can remain constant and the new market will still be in equilibrium d) The price is not a significant factor in determining the market equilibrium.
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