Refer to the information provided in Figure 3.18 below to answer the question(s) that follow. Figure 3.18
-Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D₁ to D₂ and there is an excess demand of 150 million pounds of burritos, the price of burritos would be

Question

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.

Figure 3.18
-Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D₁ to D₂ and there is an excess demand of 150 million pounds of burritos, the price of burritos would be

Quizplus · Accepted Answer

When demand increases, leading to an excess demand of 150 million pounds of burritos, the new equilibrium price where demand equals supply would be higher than before. The correct price that corresponds to the new demand curve and the given excess demand in the scenario described would be $3.00, as it aligns with the principles of supply and demand where an increase in demand with constant supply leads to a higher equilibrium price.

Refer to the Information Provided in Figure 3