Refer to the above diagram. When the market price is $19.50, we expect that the market price tends to go _____ and market quantity tends to go _____, eventually.
A. down; down
B. down; up
C. up; up
D. up; down
Market Quantity and Market Price:
The term market quantity and the market price can be estimated by using demand and supply curves wherein the intersection point of these curves helps in determining the values of the market price on the Y-axis and the value of market quantity on the X-axis.
Answer and Explanation: 1
- The correct option is (B). Down; up.
In reference to the given diagram, the initial equilibrium price and quantity are $20 and 30 units respectively;...
See full answer below.
Become a member and unlock all Study Answers
Start today. Try it nowCreate an account
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
fromChapter 3 / Lesson 10
What is market equilibrium? Learn the market equilibrium definition and study examples. See how supply and demand impact prices when a market is in equilibrium.