Use Exhibit 1. Which of the following statements is (are) correct? A. A decrease in demand would cause a surplus at the original price and the equilibrium price would fall below $18. B. A decrease in supply would cause a shortage and the quantity sold would decrease such that the equilibrium quantity is less than 600 units. C. If the actual price was $18, then the market would be at its equilibrium price. D. All of the above are correct E. A and B, only
Use Exhibit 1. Which of the following statements is (are) correct? A. A decrease in demand would cause a surplus at the original price and the equilibrium price would fall below $18. B. A decrease in supply would cause a shortage and the quantity sold would decrease such that the equilibrium quantity is less than 600 units. C. If the actual price was $18, then the market would be at its equilibrium price. D. All of the above are correct E. A and B, only
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Use Exhibit 1. Which of the following statements is (are) correct?
A. A decrease in
below $18.
B. A decrease in supply would cause a shortage and the quantity sold would decrease such that the
C. If the actual price was $18, then the market would be at its equilibrium price.
D. All of the above are correct
E. A and B, only
![Exhibit 1
Quantity
Demanded
Quantity
Supplied
Price
$20
500
750
$18
600
600
$16
700
450](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Facf78ef7-4560-4c84-aedb-e10363a67cd0%2Fa73165a9-0a2a-4410-9533-2e5692305180%2Foseob6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exhibit 1
Quantity
Demanded
Quantity
Supplied
Price
$20
500
750
$18
600
600
$16
700
450
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