Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters

-Refer to Table 3.5.1.Suppose the cost of production rises and supply decreases by 100 units at each price.The new equilibrium price is $________ and equilibrium quantity is ________ units.
A)70;450
B)70;350
C)50;450
D)50;350
E)60;400

Question

Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters
 
-Refer to Table 3.5.1.Suppose the cost of production rises and supply decreases by 100 units at each price.The new equilibrium price is $________ and equilibrium quantity is ________ units.
A)70;450 
B)70;350 
C)50;450 
D)50;350 
E)60;400

Quizplus · Accepted Answer

If supply decreases by 100 units at each price, the supply curve will shift to the left. The new equilibrium will be at the intersection of the new supply curve and the demand curve. From Table 3.5.1, we can see that the new equilibrium price will be $70 and the equilibrium quantity will be 350 units.

Use the Table Below to Answer the Following Questions