The following diagram illustrates the impact of an increase in demand. Which of the following statements is INCORRECT? R12 R11 R10 900 D₁ 1 000 1 100 1 200 1 300 Q a) Before the increase in demand, the equilibrium price is R10 and the equilibrium quan is 900. b) Owing to an increase in demand, the demand curve shifts from D to D1. At a price of R after the increase in demand, the quantity demanded is 1 200 and the quantity suppliec 1 100. c) At a price of R10, after the increase in demand, there is an excess demand. d) A new equilibrium position is formed after the increase in demand at an equilibrium pri of R12 and an equilibrium quantity of 1 100.
The following diagram illustrates the impact of an increase in demand. Which of the following statements is INCORRECT? R12 R11 R10 900 D₁ 1 000 1 100 1 200 1 300 Q a) Before the increase in demand, the equilibrium price is R10 and the equilibrium quan is 900. b) Owing to an increase in demand, the demand curve shifts from D to D1. At a price of R after the increase in demand, the quantity demanded is 1 200 and the quantity suppliec 1 100. c) At a price of R10, after the increase in demand, there is an excess demand. d) A new equilibrium position is formed after the increase in demand at an equilibrium pri of R12 and an equilibrium quantity of 1 100.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 7P
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Question
Transcribed Image Text:The following diagram illustrates the impact of an increase in demand. Which of the following
statements is INCORRECT?
a)
R12
R11
R10
900 1000 1100 1200 1300 Q
Before the increase in demand, the equilibrium price is R10 and the equilibrium quantity
is 900.
b) Owing to an increase in demand, the demand curve shifts from D to D1. At a price of R10,
after the increase in demand, the quantity demanded is 1 200 and the quantity supplied is
1 100.
c) At a price of R10, after the increase in demand, there is an excess demand.
d)
A new equilibrium position is formed after the increase in demand at an equilibrium price
of R12 and an equilibrium quantity of 1 100.
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