Exhibit 3-15 Supply and demand curves for good X
-In Exhibit 3-15, if the price moves from $2.00 to $1.00, unsold inventories will:

Question

​​Exhibit 3-15 Supply and demand curves for good X 
-In Exhibit 3-15, if the price moves from $2.00 to $1.00, unsold inventories will:

Quizplus · Accepted Answer

According to the law of demand, as the price of a good decreases, the quantity demanded increases. Therefore, if the price of good X decreases from $2.00 to $1.00, the quantity demanded will increase, reducing the amount of unsold inventories. This decrease in unsold inventories puts less pressure on the price of the good, as there is less excess supply.

​​Exhibit 3-15 Supply and Demand Curves for Good X

Exhibit 3-15 Supply and Demand Curves for Good X