The following diagram illustrates the impact of an increase in demand. Which of the followingstatements is INCORRECT?a)R12R11R10900 1000 1100 1200 1300 QBefore the increase in demand, the equilibrium price is R10 and the equilibrium quantityis 900.b) Owing to an increase in demand, the demand curve shifts from D to D1. At a price of R10,after the increase in demand, the quantity demanded is 1 200 and the quantity supplied is1 100.c) At a price of R10, after the increase in demand, there is an excess demand.d)A new equilibrium position is formed after the increase in demand at an equilibrium priceof R12 and an equilibrium quantity of 1 100.

Demand is the desire backed by a willingness to pay and the ability to pay by an individual. the…

The following diagram illustrates the impact of an increase in demand. Which of the following statements is INCORRECT? R12 R11 R10 900 D₁ 1 000 1 100 1 200 1 300 Q a) Before the increase in demand, the equilibrium price is R10 and the equilibrium quan is 900. b) Owing to an increase in demand, the demand curve shifts from D to D1. At a price of R after the increase in demand, the quantity demanded is 1 200 and the quantity suppliec 1 100. c) At a price of R10, after the increase in demand, there is an excess demand. d) A new equilibrium position is formed after the increase in demand at an equilibrium pri of R12 and an equilibrium quantity of 1 100.

The following diagram illustrates the impact of an increase in demand. Which of the following statements is INCORRECT? R12 R11 R10 900 D₁ 1 000 1 100 1 200 1 300 Q a) Before the increase in demand, the equilibrium price is R10 and the equilibrium quan is 900. b) Owing to an increase in demand, the demand curve shifts from D to D1. At a price of R after the increase in demand, the quantity demanded is 1 200 and the quantity suppliec 1 100. c) At a price of R10, after the increase in demand, there is an excess demand. d) A new equilibrium position is formed after the increase in demand at an equilibrium pri of R12 and an equilibrium quantity of 1 100.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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