Table 4.2.2.
-Look at Table 4.2.2. Input prices rise, and supply decreases by 100 rubber ducks at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ rubber ducks.
A) 70; 450
B) 70; 350
C) 50; 450
D) 50; 350
E) 60; 400

Question

Table 4.2.2.
-Look at Table 4.2.2. Input prices rise, and supply decreases by 100 rubber ducks at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ rubber ducks.
A) 70; 450 
B) 70; 350 
C) 50; 450 
D) 50; 350 
E) 60; 400

Quizplus · Accepted Answer

When input prices rise and supply decreases by 100, the supply curve shifts leftward causing the equilibrium price to increase and the equilibrium quantity to decrease. From the table, the new equilibrium price is $70 and the new equilibrium quantity is 350 rubber ducks. Therefore, the correct choice is B.

Table 4.2.2. -Look at Table 4.2.2. Input Prices Rise, and Supply Decreases