The diagram below shows the market for product B. If the shift of the supply curve from S₁ toS₂ took place, but the price failed to adjust to the new equilibrium, which one of the followingwould likely be witnessed in the market for product B?PriceS₁DemandXP₁E₁E₂Q₂QuantityaP₂S₂a) There will be an excess supply in the marketb) There will be an excess demand in the marketc) The new market price does not need to adjust, as the price can remain constant andthe new market will still be in equilibriumd) The price is not a significant factor in determining the market equilibrium.

A shift in the supply curve refers to a change in the quantity supplied of a product at every price…

The diagram below shows the market for product B. If the shift of the supply curve from S₁ to S₂ took place, but the price failed to adjust to the new equilibrium, which one of the following would likely be witnessed in the market for product B? Price S₁ Demand P₁ E₁ X E₂ P₂ Q₁ Q₂ Quantity S₂ 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 product B. If the shift of the supply curve from S₁ to S₂ took place, but the price failed to adjust to the new equilibrium, which one of the following would likely be witnessed in the market for product B? Price S₁ Demand P₁ E₁ X E₂ P₂ Q₁ Q₂ Quantity S₂ 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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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