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-> O |https://moodie2018.coastal.edu/mod/tiview php?id.177673 Score: 0 of 3 pts Checkpoint 3 Test A 5 46 of 46 The table shows the demand and supply schedules for soap A fire knocks out a large soap factory and the quantity supplied changes by 200 bars at each price At the same time, people switch to liquid soaps and the quanity of soap demanded changes by 1,200 bars at each price A surplus occurs at the original equilbrium price A. True 0 B. False The price to its new equlbrium price and the equilbrium quantity decreases increases Click to select your answerts) and then click Check Answer. Clear A Moodle Accessibility 0 Type here to search

Explanation / Answer

A fire knocks out a large soap factory due to which total supply decreases by200 at each price level and quantity demand increases by 1200. Thus a shortfall of 1400 at equilibrium price.

Thus price rises and equilibrium quantity also rises because change in demand is greater than change in price.

Thus shortfall, price rise and demand rise.

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