Question

result, Calitiomia ornngs of the folowing statem (a) The supply otF the supply of Calit to Increase. s with word processors Instead of (d) long-playing records instead of compact discs Answer Questions 17, 18, and 19 on the basis of the data in the following table. Consider the following supply and demand schedules for bushels of com (b The supply d price to ino oranges to inore )The supply the supply of C price to increa (d) The dema ing a greater inorease in t Price 250 290 375 24 350 345 365 280 30 17. The equilibrium price in this market is (a) $22 (b) $24 (c) $26 (d) $28 18. An increase in the cost of labor lowers the quantity supplied by 65 bushels at each price. The new equilibrium price would be (a) $22 (b) $24 Answer graph s 24. Ass 19. lf the quantity demanded at each price increases by 130 bushels, then the new equilibrium quantity will be Di and of buy at poi (a) 290 (b) 320 (c) 345 (d) 365

Answer 1

17. $26

Reason: It is the price at which quantity demanded equals quantity supplied

18. $28

Reason: At the price, Qd is 280 and Qs is 354-65 = 280, which are equal and thus create an equilibrium situation.

19. 365

Reason: At new points, Qd will equal Qs at price $30 where Qs is 365 and Qd is 235+130 = 365, which is also equilibrium