In the figure, let demand remain constant at an increase in wages causes firms to be 2-27 D; willing and able to sell 150 fewer units at each price than they were before the wage increase. a. The new equilibrium price and quantity will be = $6 and = 150. P Q b. The new equilibrium and quantity will be = $6 and = 400. P Q c. The new equilibrium price and quantity will be = $7 and = 250. P Q d. The new equilibrium and quantity will be = $8 and = 300. P Q In the figure, let supply remain constant at a decrease in income causes consumers to be 2-28 S; willing and able to purchase 150 fewer units at each price than they were previously. a. The new equilibrium price and quantity will be = $6 and = 150. P Q b. The new equilibrium price and quantity will be = $5 and = 150. P Q c. The new equilibrium price and quantity will be = $7 and = 250. P Q d. The new equilibrium and quantity will be = $5 and = 200. P Q In the above figure , let supply remain constant at an increase in the price of a substitute good 2-29 S; causes consumers to be willing and able to buy 150 more units of the good at each price in the list than they were when demand was Which of the following statements is (are) true? D. a. At the original equilibrium price there will be a shortage of 150. b. At the original equilibrium price there will be a surplus of 150 c. At the new equilibrium = $6 and = 450. P Q d. At the new equilibrium = $7 and = 400. P Q e. both and a d Use the following demand and supply functions to answer the following question: 2-30 Demand: Supply: Equilibrium price and output are a. = $7 and = 480. P Q b. = $10 and = 300. P Q c. = $20 and = 150. P Q d. = $100 and = 5,300. P Q e. none of the above Use the following demand and supply functions to answer the following question: 2-31 Demand: Supply: If the price is currently $11, there is a a. surplus of 110 units. b. shortage of 240 units. c. surplus of 350 units. d. shortage of 700 units.
2-27 In the figure, let demand remain constant at D; an increase in wages causes firms to be willing and able to sell 150 fewer units at each price than they were before the wage increase. a. The new equilibrium price and quantity will be P = $6 and Q = 150. b. The new equilibrium and quantity will be P = $6 and Q = 400. c. The new equilibrium price and quantity will be P = $7 and Q = 250. d. The new equilibrium and quantity will be P = $8 and Q = 300. 2-28 In the figure, let supply remain constant at S; a decrease in income causes consumers to be willing and able to purchase 150 fewer units at each price than they were previously. a. The new equilibrium price and quantity will be P = $6 and Q = 150. b. The new equilibrium price and quantity will be P = $5 and Q = 150. c. The new equilibrium price and quantity will be P = $7 and Q = 250. d. The new equilibrium and quantity will be P = $5 and Q = 200. 2-29 In the above figure , let supply remain constant at S; an increase in the price of a substitute good causes consumers to be willing and able to buy 150 more units of the good at each price in the list than they were when demand was D. Which of the following statements is (are) true? a. At the original equilibrium price there will be a shortage of 150. b. At the original equilibrium price there will be a surplus of 150 c. At the new equilibrium P = $6 and Q = 450. d. At the new equilibrium P = $7 and Q = 400. e. both a and d 2-30 Use the following demand and supply functions to answer the following question: Demand: Supply: Equilibrium price and output are a. P = $7 and Q = 480. b. P = $10 and Q = 300. c. P = $20 and Q = 150. d. P = $100 and Q = 5,300. e. none of the above 2-31 Use the following demand and supply functions to answer the following question: Demand: Supply: If the price is currently $11, there is a a. surplus of 110 units. b. shortage of 240 units. c. surplus of 350 units. d. shortage of 700 units.