The following table shows the quantity demanded and quantity supplied of grapefruits (in millions of kilos):

-Refer to the table above to answer this question.If buyers think that the price of grapefruits is going to rise,causing the demand to change by 6 million kilos,what will be the new equilibrium price and quantity?
A)$2.50 and 28 million kilos
B)$2.75 and 26 million kilos
C)$2.50 and 26 million kilos
D)$3.00 and 36 million kilos

Question

The following table shows the quantity demanded and quantity supplied of grapefruits (in millions of kilos):
 
-Refer to the table above to answer this question.If buyers think that the price of grapefruits is going to rise,causing the demand to change by 6 million kilos,what will be the new equilibrium price and quantity?
A)$2.50 and 28 million kilos 
B)$2.75 and 26 million kilos 
C)$2.50 and 26 million kilos 
D)$3.00 and 36 million kilos

Quizplus · Accepted Answer

If buyers expect the price to rise, demand increases by 6 million kilos. The new equilibrium is where the increased demand meets supply, which is at $3.00 and 36 million kilos.

The Following Table Shows the Quantity Demanded and Quantity Supplied