Consider the mountain bike market, shown below. $, Price (bikes) $2,000 $1,750 $1,500 P* $1,250 $1,000 $750 $500 S I 60 80 100 120 140 160 180 Q* Quantity (Bikes per month) Suppose that the current market price was $1,500. At this price, there exists a ✓ bikes. shortage of 100

Consider the mountain bike market, shown below. $, Price (bikes) $2,000 $1,750 $1,500 P* $1,250 $1,000 $750 $500 S I 60 80 100 120 140 160 180 Q* Quantity (Bikes per month) Suppose that the current market price was $1,500. At this price, there exists a ✓ bikes. shortage of 100

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 5.10P

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Question

Consider the mountain bike market, shown below.
$, Price
(bikes)
$2,000
$1,750
$1,500
P* $1,250
$1,000
$750
$500
S
I
60 80 100 120 140 160 180
Q*
Quantity
(Bikes per month)
Suppose that the current market price was $1,500. At this price, there exists a
✓ bikes.
shortage
of 100

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