If resale price maintenance leads to a shift in the market demand that equals the shift in the market supply, the quantity of the good sold will ________and the manufacturer's profit will ________.

Question

Quizplus · Accepted Answer

If the shift in the market demand equals the shift in the market supply, it will result in a new equilibrium price and quantity that are the same as the original price and quantity. Therefore, the quantity of the good sold and the manufacturer's profit will not change.

If Resale Price Maintenance Leads to a Shift in the Market