Suppose total quantity supplied is 100 units and total quantity demanded is 150

Question

Suppose total quantity supplied is 100 units and total quantity demanded is 150 units at the current market price.

(Assume an upward sloping supply curve and downward sloping demand curve)

For the market to move into equilibrium, the market price must ______. This will _______ qty supplied and ______ qty demanded.

increase; increase; increase

decrease; decrease; increase

increase; increase; decrease.

decrease; increase; increase

increase; increase; increase

decrease; decrease; increase

increase; increase; decrease.

decrease; increase; increase

Explanation / Answer

The correct option is decrease; decrease; increase. Since the quantity supplied is greater than the quantity demanded so there will be export.

For the market to move into equilibrium, the market price must decrease. This will decrease qty supplied and increase qty demanded.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.