Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $10, we would expect that
A) price will increase until quantity demanded equals quantity supplied.
B) demand will decrease until quantity demanded equals quantity supplied.
C) supply will increase until quantity demanded equals quantity supplied.
D) there will be no change in the price since the market is in equilibrium.
D
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The figure above illustrates the problem of overcrowding and external costs experienced during the summer months in the state park. An efficient allocation of resources occurs at
A) point F. B) point G. C) point H. D) point I.
Refer to the Article Summary. If Netflix chose to use Shiller's pricing method
A) consumer surplus, producer surplus, and deadweight loss would all be equal. B) producer surplus would be zero. C) deadweight loss would be maximized. D) consumer surplus would be zero.