hat Occurs when iele is a ng items IIi uien (demand and sup v Market forces bring the car insurance market to a new equilibrium point. v The equilibrium price and equilibrium quantity of car insurance has decreased. v At the original equilibrium price for car insurance, the quantity supplied exceeds the quantity demanded. v Car insurance companies start to lower their prices. v The price of cars increases. v The quantity of car insurance that consumer are willing to buy starts to increase. v The demand for car insurance decreases.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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QUESTION 1
Think about the process that occurs when there is a shock to equilibrium. Please put the following items in their correct order (demand and supply)
v Market forces bring the car insurance market to a new equilibrium point.
v The equilibrium price and equilibrium quantity of car insurance has decreased.
v At the original equilibrium price for car insurance, the quantity supplied exceeds the quantity demanded.
v Car insurance companies start to lower their prices.
v The price of cars increases.
v The quantity of car insurance that consumer are willing to buy starts to increase.
v The demand for car insurance decreases.
Transcribed Image Text:QUESTION 1 Think about the process that occurs when there is a shock to equilibrium. Please put the following items in their correct order (demand and supply) v Market forces bring the car insurance market to a new equilibrium point. v The equilibrium price and equilibrium quantity of car insurance has decreased. v At the original equilibrium price for car insurance, the quantity supplied exceeds the quantity demanded. v Car insurance companies start to lower their prices. v The price of cars increases. v The quantity of car insurance that consumer are willing to buy starts to increase. v The demand for car insurance decreases.
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