Refer to the information provided in Figure 3.10 below to answer the questions t

Question

Refer to the information provided in Figure 3.10 below to answer the questions that follow. 1,140 ; 0 150 Q 50 Number of pairs of Rollerblades per week Figure 3.10 Refer to Figure 3.10. If the current quantity demanded of rollerblades is 150 per week, you accurately predict that in this market, Select one: O a price, quantity supplied, and quantity demanded will increase. o b. price and quantity supplied will increase, and quantity demanded will decrease. O c. price and quantity supplied will decrease, and quantity demanded will increase O d-price, quantity supplied, and quantity demanded will decrease.

Explanation / Answer

It is clearly seen in the diagram that the price of 1140 is less than the equilibrium price and at this price of 1140, the demand is 150 which is clearly greater than the quantity supplied at this price. Thus there exists a shortage in the market due to excess demand and so we can predict that in this market price and quantity supplied will increase and quantity demanded will decrease. So option (b) is correct.

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