Question

Back to Assignment Attempts: 0.6 0.6 Do No Harm: 0.6/1 1. Working with Numbers and Graphs Q1 Suppose the current price of a good is $185. At this price, the quantity supplied is 75 units, and the quantity demanded is 35 units. For every $1 decrease in price, the quantity supplied decreases by 4 units and the quantity demanded increases by 4 units. At the current price, the quantity demanded is than the quantity supplied. This means that the market is currently experiencing a . In order to adjust, the market price will until the quantity demanded and quantity supplied are equal. The result is an equilibrium quantity of and an equilibrium price of $ Grade It Now Save & Continue Continue without saving

Answer 1

quantity demanded is lower than quantity supplied(35<75)

market is experiencing low demand or surplus

market prices will decrease until quantity supplied = quantity demanded

the result is equilibrium quantity of 55 units at price of $180 per unit.