Exhibit 3-15 Supply and demand curves for good X In Exhibit 3-15, if the market price of good X is initially $1.50, a movement toward equilibrium requires:

Question

Exhibit 3-15  Supply and demand curves for good X  In Exhibit 3-15, if the market price of good X is initially $1.50, a movement toward equilibrium requires:

Quizplus · Accepted Answer

If the market price of good X is initially $1.50, and a movement toward equilibrium is required, then the price needs to fall below $1.50. This will cause the quantity supplied to fall, but the quantity demanded will rise, resulting in movement toward equilibrium. Thus, option D is the correct answer. Option A is incorrect because it assumes an equilibrium already exists, which is not the case. Option B is incorrect because it states that both the quantity supplied and the quantity demanded will fall, which is not necessarily true. Option C is incorrect because it states that the price will remain the same, which is not possible if movement toward equilibrium is required.

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