Use the table below to answer the following questions.
Table 3.5.3
-Refer to Table 3.5.3.A new store opens up on the edge of campus, Great Wild North Sportswear, which has the capacity to do as much business as all the existing businesses.The quantity of t- shirts supplied doubles at each price.In addition, in a television interview, Joe Cool shows off his designer sport t- shirt, setting off a new craze that doubles business at the local sportswear establishments.The quantity of t- shirts demanded doubles at each price.The new equilibrium price is $_______ and the new equilibrium quantity is _______ t- shirts per month.

Question

Use the table below to answer the following questions.
Table 3.5.3 
-Refer to Table 3.5.3.A new store opens up on the edge of campus, Great Wild North Sportswear, which has the capacity to do as much business as all the existing businesses.The quantity of t- shirts supplied doubles at each price.In addition, in a television interview, Joe Cool shows off his designer sport t- shirt, setting off a new craze that doubles business at the local sportswear establishments.The quantity of t- shirts demanded doubles at each price.The new equilibrium price is $_______ and the new equilibrium quantity is _______ t- shirts per month.

Quizplus · Accepted Answer

The new equilibrium price remains the same because the increase in supply (due to the new store) and the increase in demand (due to the new craze) are proportional, doubling both supply and demand. This keeps the price stable but doubles the equilibrium quantity.

Use the Table Below to Answer the Following Questions