Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point B. If supply shifts from S2 to S1, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. $5.00; 4
B. $7.00; 7
C. $5.00; 10
D. $7.00; 6
Answer: C
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A) contractionary automatic stabilizers. B) expansionary fiscal policy. C) contractionary fiscal policy. D) expansionary monetary policy. E) contractionary monetary policy.
An example of income that is received but not earned is
a. net income payments b. unemployment compensation c. Social Security contributions d. corporate retained earnings e. personal income taxes
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a. based on b. the mirror image around the vertical axis of c. twice as steep as d. half as steep as
The misperceptions theory of the short-run aggregate supply curve says that the quantity of output supplied will increase if the price level
a. increases by less than expected so that firms believe the relative price of their output has increased. b. increases by less than expected so that firms believe the relative price of their output has decreased. c. increases by more than expected so that firms believe the relative price of their output has increased. d. increases by more than expected so that firms believe the relative price of their output has decreased.