Exhibit 1 Price 10. Use Exhibit 1. For this given graph of a market, which of the following statements is (are) correct? (x) An increase in supply would cause a surplus and, as a result, the price would fall below $18 and the new equilibrium quantity would be in excess of 600 units (y) If the actual price was $12, there would be a shortage of 450 units and the price would rise to equilibrium at $18. (z) A decrease in demand would cause a surplus at the price of $18 and the quantity sold would decrease to an equilibrium amount that is less than 600 units. A. (x), (y) and (z) B. (x) and (y) only $24 $18 $12 C. (x) and (z) only D. (y) and (z) only E. (z) only 150 300 450 600 750 900 Quantity

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 21P
icon
Related questions
Question
None
Exhibit 1
Price
10. Use Exhibit 1. For this given graph of a market, which of the
following statements is (are) correct?
(x) An increase in supply would cause a surplus and, as
a result, the price would fall below $18 and the new
equilibrium quantity would be in excess of 600 units
(y) If the actual price was $12, there would be a shortage of
450 units and the price would rise to equilibrium at $18.
(z) A decrease in demand would cause a surplus at the
price of $18 and the quantity sold would decrease to
an equilibrium amount that is less than 600 units.
A. (x), (y) and (z)
B. (x) and (y) only
$24
$18
$12
C. (x) and (z) only
D. (y) and (z) only
E. (z) only
150 300 450 600 750 900
Quantity
Transcribed Image Text:Exhibit 1 Price 10. Use Exhibit 1. For this given graph of a market, which of the following statements is (are) correct? (x) An increase in supply would cause a surplus and, as a result, the price would fall below $18 and the new equilibrium quantity would be in excess of 600 units (y) If the actual price was $12, there would be a shortage of 450 units and the price would rise to equilibrium at $18. (z) A decrease in demand would cause a surplus at the price of $18 and the quantity sold would decrease to an equilibrium amount that is less than 600 units. A. (x), (y) and (z) B. (x) and (y) only $24 $18 $12 C. (x) and (z) only D. (y) and (z) only E. (z) only 150 300 450 600 750 900 Quantity
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Macroeconomics
Macroeconomics
Economics
ISBN:
9781337617390
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning