10) The following table shows the demand and supply schedules for good X. Price (£) 1 2 3 4 5 6 7 Quantity demanded 120 100 80 60 40 20 0 Quantity supplied 0 20 40 60 80 100 120 Assume that supply increases by 40 units at all prices. What will be the effect on equilibrium output? A) Rise by 60 units. B) It's impossible to say because not enough information is given in the table. C) Rise by 40 units. D) Rise by 20 units.
10) The following table shows the demand and supply schedules for good X. Price (£) 1 2 3 4 5 6 7 Quantity demanded 120 100 80 60 40 20 0 Quantity supplied 0 20 40 60 80 100 120 Assume that supply increases by 40 units at all prices. What will be the effect on equilibrium output? A) Rise by 60 units. B) It's impossible to say because not enough information is given in the table. C) Rise by 40 units. D) Rise by 20 units.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter6: Demand And Elasticity
Section: Chapter Questions
Problem 2TY
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10) The following table shows the
Quantity demanded 120 100 80 60 40 20 0
Quantity supplied 0 20 40 60 80 100 120
Assume that supply increases by 40 units at all prices. What will be the effect on equilibrium output?
- A) Rise by 60 units.
- B) It's impossible to say because not enough information is given in the table.
- C) Rise by 40 units.
- D) Rise by 20 units.
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