Refer to the information provided in Figure 5.6 below to answer the question that follows. Figure 5.6
-Refer to Figure 5.6. The market is initially in equilibrium at Point A and supply shifts from S1 to S2. Which of the following statements is true?
A) Price will still serve as a rationing device causing quantity supplied to exceed 12 thousand pizzas.
B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity exceeds the original equilibrium quantity.
C) Price will still serve as a rationing device causing quantity demanded to fall from 12 to 10 thousand pizzas.
D) The market cannot move to a new equilibrium until there is also a change in demand.
Correct Answer:
Verified
Q118: A perfectly price elastic supply curve will
Q119: The income elasticity of demand for low-quality
Q120: If income increases by 10% and, in
Q121: Refer to the information provided in Figure
Q122: Refer to the information provided in Figure
Q124: The income elasticity of demand for education
Q125: Refer to the information provided in Figure
Q126: If an increase in income results in
Q127: The cross-price elasticity of demand between good
Q128: If an increase in income results in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents