Table 2.1 Demand and Supply Data for CD Players

$$\begin{array} { r r r }
\text { Price } & \begin{array} { c }
\text { Quantity } \
\text { Demanded }
\end{array} & \begin{array} { c }
\text { Quantity } \
\text { Supplied }
\end{array} \
\$ 100 & 1,000 & 100 \
150 & 900 & 300 \
200 & 800 & 500 \
250 & 600 & 600 \
300 & 300 & 650
\end{array}$$
-Refer to Table 2.1. Suppose that an increase in consumer incomes results in the demand for CD players increasing by 350 units at every price. With the supply of CD players remaining constant, the new equilibrium price will be
A) $100
B) $150
C) $200
D) $300

Question

Table 2.1 Demand and Supply Data for CD Players 
 
 $$\begin{array} { r r r } 
\text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { Demanded }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Supplied }
\end{array} \
\$ 100 & 1,000 & 100 \
150 & 900 & 300 \
200 & 800 & 500 \
250 & 600 & 600 \
300 & 300 & 650
\end{array}$$
-Refer to Table 2.1. Suppose that an increase in consumer incomes results in the demand for CD players increasing by 350 units at every price. With the supply of CD players remaining constant, the new equilibrium price will be
A) $100
B) $150
C) $200
D) $300

Quizplus · Accepted Answer

The new equilibrium price is $300 because after increasing the demand by 350 units at every price, the quantity demanded and supplied become equal at 650 units (300 original demand + 350 increase in demand) at the $300 price point.

Table 21 Demand and Supply Data for CD Players -Refer to Table 2