Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU

-Refer to Table 3.5.3.In a television interview,Joe Cool shows off his designer sport t-shirt,setting off a new craze that doubles business at the sportswear establishments.The quantity of t-shirts demanded doubles at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ t-shirts per month.
A)12;240
B)8;400
C)16;400
D)12;120
E)16;200

Question

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
 
-Refer to Table 3.5.3.In a television interview,Joe Cool shows off his designer sport t-shirt,setting off a new craze that doubles business at the sportswear establishments.The quantity of t-shirts demanded doubles at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ t-shirts per month.
A)12;240 
B)8;400 
C)16;400 
D)12;120 
E)16;200

Quizplus · Accepted Answer

The new equilibrium price is $12 and the new equilibrium quantity is 240 t-shirts per month.The original equilibrium price is $8 and the original equilibrium quantity is 120 t-shirts per month. When the quantity of t-shirts demanded doubles at each price, the new equilibrium quantity will be 240 t-shirts per month. The new equilibrium price will be $12, which is the price at which the quantity of t-shirts demanded equals the quantity of t-shirts supplied.

Use the Table Below to Answer the Following Questions