Reference: Ref 4-3 (Table: Equilibrium Price, Quantity) Refer to the table. If the demand curve for the product shifted to the right such that 10 more units of the good are demanded at every price, what is the new equilibrium price?

Question

Quizplus · Accepted Answer

The new demand curve would be shifted to the right of the original demand curve. This will cause an increase in both equilibrium price and quantity. From the table, we can observe that the original equilibrium price and quantity were $14 and 60 units respectively. If the demand curve shifts to the right by 10 units at every price, new equilibrium quantity would be 70 units, and the corresponding equilibrium price would be $16. Therefore, the new equilibrium price is $16.

Reference: Ref 4-3 (Table: Equilibrium Price, Quantity) Refer to the Table