Exhibit 3-2
-In the market represented in Exhibit 3-2, if price rises from $.70 to $.80 as a result of government mandate, then
A)a surplus of 30 units will occur.
B)producers will not be able to sell all they are willing to produce.
C)consumers would like to buy more than will be produced.
D)a shortage of 15 units will occur.
E)a new market equilibrium quantity of 25 units will result.

Question

Exhibit 3-2 
-In the market represented in Exhibit 3-2, if price rises from $.70 to $.80 as a result of government mandate, then
A)a surplus of 30 units will occur. 
B)producers will not be able to sell all they are willing to produce. 
C)consumers would like to buy more than will be produced. 
D)a shortage of 15 units will occur. 
E)a new market equilibrium quantity of 25 units will result.

Quizplus · Accepted Answer

The Answer of Exhibit 3-2 
-In the market represented in Exhibit 3-2, if price rises from $.70 to $.80 as a result of government mandate, then
A)a surplus of 30 units will occur. 
B)producers will not be able to sell all they are willing to produce. 
C)consumers would like to buy more than will be produced. 
D)a shortage of 15 units will occur. 
E)a new market equilibrium quantity of 25 units will result.

Exhibit 3-2 -In the Market Represented in Exhibit 3-2, If Price Rises