Table 14.1
-Refer to Table 14.1,which shows the market for used motorcycles in a small Midwestern town.Which of the following is true?
A) The market is in equilibrium.
B) We can expect the price of used motorcycles to fall.
C) We can expect the price of used motorcycles to rise.
D) Buyers' willingness to pay for a used motorcycle will remain unchanged.

Question

Table 14.1
-Refer to Table 14.1,which shows the market for used motorcycles in a small Midwestern town.Which of the following is true?
A) The market is in equilibrium. 
B) We can expect the price of used motorcycles to fall. 
C) We can expect the price of used motorcycles to rise. 
D) Buyers' willingness to pay for a used motorcycle will remain unchanged.

Quizplus · Accepted Answer

If the market is not in equilibrium, and there is an excess supply of used motorcycles, we can expect the price to fall to reach equilibrium.

Table 14.1 -Refer to Table 14.1,which Shows the Market for Used Motorcycles