Refer to the figure below:
Let supply remain constant at S; an increase in the price of a substitute good causes consumers to be willing and able to buy 150 more units of the good at each price in the list than they were when demand was D. Which of the following statements is (are) true?
A. At the original equilibrium price there will be a shortage of 150.
B. At the original equilibrium price there will be a surplus of 150
C. At the new equilibrium P = $6 and Q = 450.
D. At the new equilibrium P = $7 and Q = 400.
E. both a and d
Answer: E
Economics
You might also like to view...
Suppose Mack's wage was $7.00 an hour in 2001 and was $12.00 per hour in 2012. The CPI was 94 in 2001 and 201 in 2012. The 2001 wage in terms of 2012 dollars is
A) $13.16. B) $7.00. C) $14.97. D) $14.07. E) $3.48.
Economics
An increase in the cost of an input will result in
A) a leftward shift in the firm's supply curve. B) an upward shift of the firm's marginal cost curve. C) a leftward shift of the market supply curve. D) All of the above.
Economics