Figure 2.1 The Market for Calculators

-Refer to Figure 2.1. Initially, the market is in equilibrium at a price of $25 and quantity of 15 calculators. If productivity decreases for workers who produce calculators, which of the following would best represent the new equilibrium price and quantity?

Question

Figure 2.1 The Market for Calculators
 
-Refer to Figure 2.1. Initially, the market is in equilibrium at a price of $25 and quantity of 15 calculators. If productivity decreases for workers who produce calculators, which of the following would best represent the new equilibrium price and quantity?

Quizplus · Accepted Answer

A decrease in productivity would likely cause the supply curve to shift to the left, leading to a higher equilibrium price and a lower equilibrium quantity. Option C reflects this scenario with a higher price ($50) and a lower quantity (10 calculators) compared to the initial equilibrium.

Figure 2.1 the Market for Calculators