Exhibit 3-7 Demand and supply curves

-In Exhibit 3-7, if price happened to currently be $25 in this market, a _______ would result, causing a _______ in price.

Question

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Exhibit 3-7 Demand and supply curves
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-In Exhibit 3-7, if price happened to currently be $25 in this market, a _______ would result, causing a _______ in price.​

Quizplus · Accepted Answer

At a price of $25, the quantity demanded (Qd) would be greater than the quantity supplied (Qs), resulting in a shortage. As a result of the shortage, sellers have an incentive to increase the price, so the price would increase.

​ Exhibit 3-7 Demand and Supply Curves

Exhibit 3-7 Demand and Supply Curves