Refer to the figure below. What will happen if the market price is $14? a) There will be a shortage of 20 units and producers will increase their Production • b) There will be a shortage of 40 units and producers will increase their Production • c) There will be a surplus of 40 units and prices will decrease • d) There will be a surplus of 20 units and prices will decrease

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Refer to the figure below. What will happen if the market price is $14? a) There will be a shortage of 20 units and producers will increase their Production • b) There will be a shortage of 40 units and producers will increase their Production • c) There will be a surplus of 40 units and prices will decrease • d) There will be a surplus of 20 units and prices will decrease
Price ($)
20
18
16
14
12
10
8
6
4
2
0
0
10
20
30
40
50
Quantity
60
70
80
D
100
90
Transcribed Image Text:Price ($) 20 18 16 14 12 10 8 6 4 2 0 0 10 20 30 40 50 Quantity 60 70 80 D 100 90
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