Use the table below to answer the following questions.

-Refer to Table 3.5.1.Suppose a problem develops with car- seat heaters - they malfunction and occasionally cause serious burns.As a result, demand decreases by 100 heaters at each price.Simultaneously, the cost of production rises, and supply decreases by 100 heaters at each price.The new equilibrium price is $_______ and the new equilibrium quantity is _______ heaters per month.

Question

Use the table below to answer the following questions.
 
-Refer to Table 3.5.1.Suppose a problem develops with car- seat heaters - they malfunction and occasionally cause serious burns.As a result, demand decreases by 100 heaters at each price.Simultaneously, the cost of production rises, and supply decreases by 100 heaters at each price.The new equilibrium price is $_______ and the new equilibrium quantity is _______ heaters per month.

Quizplus · Accepted Answer

The decrease in demand and supply by the same amount keeps the equilibrium quantity the same but increases the equilibrium price.

Use the Table Below to Answer the Following Questions