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 B. If demand shifts from D_{2 to}D₁ and there is an excess supply of 200 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 B. If demand shifts from D_{2 to}D₁ and there is an excess supply of 200 million pounds of burritos, the price of burritos would be

Quizplus · Accepted Answer

When demand shifts from D2 to D1, the new equilibrium price is lower. An excess supply of 200 million pounds indicates that the price is above the new equilibrium, which would be at $4.00.

Refer to the Information Provided in Figure 3