The graph shows the supply and demand curves for a certain product, which has a current selling price of $ 500. The laws of supply and demand most support which conclusion about the product? QuantityA. The current selling price for the product is too low.O B. The current selling price for the product is too high.C. The current selling price matches the product's equilibrium price.D. The current selling price for the product is the result of a shortage. Demand$500Supply$400$300$200$1000.1,000 2,000 3,000 4,000 5,000Price

The equilibrium price of a good decide where the demand and supply of the goods are equal.

Quantity A. The current selling price for the product is too low. B. The current selling price for the product is too high. C. The current selling price matches the product's equilibrium price. D. The current selling price for the product is the result of a shortage.

Quantity A. The current selling price for the product is too low. B. The current selling price for the product is too high. C. The current selling price matches the product's equilibrium price. D. The current selling price for the product is the result of a shortage.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter2: The One Lesson Of Business

Section: Chapter Questions

Problem 2.3IP

See similar textbooks

Related questions

Q: I'm reviewing for my final, and I get stuck on this question every time I try to work through it.

A: The equilibrium price is known as the prevailing market price. The equilibrium price arises at the…

Q: Companies that extract crude oil are not the only entities responsible for the price of gas. What is…

A: Consumers are acutely aware of rising gasoline prices. Because of this, rising fuel prices (rather…

Q: 1. Consider the market for minivans, indicate the impact if any on demand, supply, price and…

A: Below is the attached graph with the impact on demand, supply, price and quantity for Minivans…

Q: c. The market for blueberry muffins i. Scenario 1: More people become health conscious and realize…

A: Equilibrium is established at such a price where the quantity demanded equals quantity supplied.

Q: a. Draw a figure depicting market equilibrium in the ice-cream market. Label the figure properly.…

A: Solution: a)…

Q: Price Floors and Ceilings 0 SETTINGS Reset . GRAPH Price Floor Price Ceiling Price ($) Price Floor…

A: Price floor is the legal minimum price that is set by the government below which a consumer cannot…

Q: e price when the quantity supplied equals quantity demanded is called the

A: Equilibrium is the situation where demand equals to supply Demand curve is downward sloping curve…

Q: Draw the S & D Graph Assignment Instructions Assignment Directions: Download and complete the…

A: demand curve is downward sloping curve due to law of demand which says there is inverse relationship…

Q: Number 2 please

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first three…

Q: 4. Price of 1 kilo potatoes on Tuesday is 36dhs. Same kilo of potatoes is 60dhs on Friday. When…

A: Economics is the study of how the scarce resources of society are exploited. It is a social science…

Q: Use Exhibit 1. If the actual price in the market was $16, then a A. shortage of 700 units would…

Q: In the country of Solow, people buy only three things: food, rent, and luxury goods. Last year, the…

A: Answer: It is given that the price of luxury goods went down and the price of rent increased 5%. The…

Q: Table 2: Quantity demanded and supply for a given market Price Quantity Quantity Demanded Supplied…

A: Given information extracted from the table:Equilibrium quantity = 30Equilibrium price = $6

Q: • Indicate whether there is a shortage (quantity demanded > quantity supplied) or a surplus…

A: Price of Bushels Quantity Demanded Quantity Supplied Surplus or Shortage Amount 40 20 60 Surplus…

Q: Price Quantity demanded Quantity supplied 3 150 60 4 100 100 5 70 130 6 50 150…

A: Price Quantity demanded Quantity supplied 3 150 60 4 100 100 5 70 130…

Q: Quantity Supplied Quantity Price Demanded $50 300 $55 220 80 $60 150 150 $65 90 230 $70 30 300 Using…

A: At price 70,quantity supplied is greater than quantity demanded. Therefore there would be surplus of…

Q: he following sets of statements contain common errors. Identify and explain each error: a. Demand…

A: The demand shows the desire to purchase the certain good with willingness to purchase backed with…

Q: hich of the following is occurring in the market when an excess quantity of a good is supplied at…

A: Equilibrium is achieved at the output level where Qs equals Qd.

Q: When a market is in shortage,

A: Market shortage is a situation in which quantity demanded in the market is more than quantity…

Q: The price of a DVD rental is 1.50 dollar and the price of a downloaded movie is $1. If the price of…

A: Initial DVD rental price = $1.50 Final DVD rental price = $2 Price of download movie = $1

Q: A cyberattack this week closed the largest fuel pipeline in the U.S., restricting gasoline supplies…

A: Restricted gasoline supplies to the northeast tends to diminish the supply of gasoline which will…

Q: Table 2: Quantity demanded and supply Price Quantity Quan Demanded Suppl $10 10 60 $8 20 45 30 30 40…

A: The shortage is the market situation when the demand is greater and the supply is less. While…

Q: People buy more of Pepsi when the price of Coke rises. These goods are

A: 1. Substitute goods - These are the goods which can substitute each other i.e. we can use one good…

Q: Other things constant, a decrease in the demand for hair dryers will a. increase the demand for…

A: when the demand for hairdryers reduces then there will be a decrease in demand for workers as…

Q: A.Draw a figure depicting market equilibrium in the ice-cream market. Label the figure properly.…

A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…

Q: Problem The average of price of Guess bag is 45 KD, the average price of Louis Vuiton bag is…

A: Louis Vuiton bag (LVB) is a super-luxury commodity; therefore, its demand is inelastic - the change…

Q: The bread machine market has seen a growth in demand by 652%and the demand in the travel lugagage…

A: In times of a pandemic, people are generally staying indoors and mostly consuming home-cooked food.…

Q: Refer to the table below to answer the questions. Quantity Demanded Quantity Supplied Price per…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Enumerate some (a) advantages and (b) disadvantages of learning the concept of demand and concept of…

A: Evolution of money has been of great importance to the world. Since the ages and currently money is…

Q: Price Quantity demanded Quantity supplied 3 150 60 4 100 100 5 70 130 6 50 150…

A: If the price of chocolates is $5, then Qd = 70 and Qs = 130 Excess supply = 130 – 70…

Q: 1. Identify how the following factors affecting demand impacts the given goods/services. (POSITIVE,…

A: An inferior good is such a product or service whose usage decreases with increasing income. For…

Q: Show the effect of the following events on the market forchicken: a) The price of chicken…

A: Analyzing economic principles such as supply, demand, and price allows to better determine consumer…

Q: 1."When the weather is very hot, the price of vegetables rises in the markets throughout the…

A: Due to hot weather,demand for vegetables increases,supply remaining same.

Q: the price when the quantity supplied equals quantity demanded is called the

A: A market-clearing price is that the price of an honest or service at which quantity supplied is…

Q: Directions: Complete a supply & demand schedule Complete a supply & demand curve 1. Good/Service:…

A: Answer: As per the instructions given to frame the demand/supply schedule the schedule is given…

Q: If the price of a candy bar is $1 and the price of a fast food meal is $5,A) the money price of a…

A: A price is the amount of money or reward in exchange for one unit of products or services provided…

Q: Quantity Demanded Quantity Supplied (Pizzas per Month) Price per Pizza (Pizzas per Month) RM3 1,200…

A: Equilibrium in a market place is achieved where the quantity demanded is equal to quantity supplied.…

Q: How do i calculate the equilibrium price and equilibrium quantity Price Quantity Supplied…

A: The equilibrium price seems to be the only value which customers' preferences and producers'…

Q: Price of a Quantity of movies movie Demanded $15 155 $17 ? 155 163 157

A: Law of demand states that there is an inverse relationship between price and quantity demanded,…

Q: rice Question 5 What would happen to equilibrium price and equilibrium quantity of khaki pants if...…

A: The demand curve depicts that there exists an inverse relationship between price and quantity…

Q: a) If the price in this market is $8, find quantity demanded. b) If the price in this market is $8,…

A: Equilibrium is achieved where quantity demanded is equal to quantity supplied.

Q: With the rise in the price quantity demanded for the goods falls and it is known as decrease in…

A: Demand for a good or service refers to the various levels of quantities of such good or service the…

Q: Table 2: Quantity demanded and supply for a given market Price Quantity Quantity Demanded Supplied…

A: The above table shows the quantity demanded and quantity supplied with their respective prices. At…

Question

The graph shows the supply and demand curves for a certain product, which has a current selling price of $ 500. The laws of supply and demand most support which conclusion about the product?

Quantity
A. The current selling price for the product is too low.
O B. The current selling price for the product is too high.
C. The current selling price matches the product's equilibrium price.
D. The current selling price for the product is the result of a shortage.

Demand
$500
Supply
$400
$300
$200
$100
0.
1,000 2,000 3,000 4,000 5,000
Price

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

Expert Solution