According to the graph shown, if the market goes from equilibrium to having its price set at $10:
A. market transactions will decrease by 7.
B. market transactions will decrease by 10.
C. market transactions will not change, only price has changed.
D. market transactions will decrease by 3.
Answer: A
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Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?
A) The firm will exit the industry if it continues to suffer economic losses. B) In the long run the firm will be able to charge a price that is greater than its average total cost. C) The firm's demand curve will shift to the right if it stays in business in the long run. D) The firm will break even if its stays in business in the long run.
Which industry would be best characterized as monopolistically competitive?
A. business cloud-computing services B. smart-phone manufacturing C. web design consulting D. Internet-search sites