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 union negotiations result in higher wages but not higher worker productivity, which of the following would best represent the new equilibrium price and quantity?
A) price = $40, quantity = 6 calculators
B) price = $50, quantity = 10 calculators
C) price = $40, quantity = 21 calculators
D) price = $65, quantity = 16 calculators

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 union negotiations result in higher wages but not higher worker productivity, which of the following would best represent the new equilibrium price and quantity?
A) price = $40, quantity = 6 calculators 
B) price = $50, quantity = 10 calculators 
C) price = $40, quantity = 21 calculators 
D) price = $65, quantity = 16 calculators

Quizplus · Accepted Answer

The Answer of 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 union negotiations result in higher wages but not higher worker productivity, which of the following would best represent the new equilibrium price and quantity?
A) price = $40, quantity = 6 calculators 
B) price = $50, quantity = 10 calculators 
C) price = $40, quantity = 21 calculators 
D) price = $65, quantity = 16 calculators

Figure 2.1 the Market for Calculators