Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters

-Refer to Table 3.5.1. Suppose the cost of production rises, causing supply to decrease by 100 units at each price. The new equilibrium price is $________ and equilibrium quantity is ________ units.

Question

Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters
 
-Refer to Table 3.5.1. Suppose the cost of production rises, causing supply to decrease by 100 units at each price. The new equilibrium price is $________ and equilibrium quantity is ________ units.

Quizplus · Accepted Answer

The correct answer is B.When the cost of production rises, the supply curve shifts to the left. This means that at each price, the quantity supplied is lower than before. The new equilibrium point is where the supply curve intersects the demand curve. At this point, the quantity supplied is equal to the quantity demanded. The new equilibrium price is $70 and the equilibrium quantity is 350 units.

Use the Table Below to Answer the Following Questions