Question

There has been a change in the market (represented below). The change is represented by the following two equations. Circle the one correct conclusion that describes the market change.

                                    Q = 90 + 6.2P   and Q = 110 – 4.6P (need answered)

Change in Market-Approximately what will suppliers willingly supply if the government controls the market price to be $3.00 (You must first find the market equilibrium price and quantity in order to see how the $3.00 relates to them)?

Q = 100 – 4.6P and Q = 75 + 6.2P

a. demand has decreased

b. demand has increased

c. supply has decreased

d. supply has increased

e. supply has decreased and demand has decreased

f. supply has increased and demand has increased

Answer 1