16% 09/18/18 1st attempt The market for college textbooks is illustrated in the

Question

16% 09/18/18 1st attempt The market for college textbooks is illustrated in the graph below. In the market for textbooks, the current price of a textbook is $125. Price $150 $100 250 500 750 Which of the following statements best describes the current and future market conditions for textbooks? Choose one: O A The market for textbooks has a shortage. There will be an upward pressure on price, which will cause quantity demanded to fall and quantity supplied to rise. B. The market is currently in equilibrium and the price quantity demanded and quantity supplied will not change in the near future. O C. The market for textbooks has a surphs. There will be an upwhd pressure on price, which will cause quantity 16/32 7 OF 32 CQUESTIONS COMPLETED

Explanation / Answer

Solution - A

Option A .The Market for textbook has a shortage. There will be an upward pressure on price which cause quantity demanded to fall and quantity supplied to rise . Is Correct Option .

Reason - Current price $ 125 Quantity Supplied 375 and Quantity Demanded 625

When Demand greater than Supply there will be Shrotage and incrwasini price Increase Supply and Decrease Demand so Option A is Correct Option

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