Figure 6.6
-In Figure 6.6 if price is P₃ then the industry will

Name: Figure 6.6 -In Figure 6.6 if price is P₃ then the industry will
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Question

Quizplus · Accepted Answer

If price is at P₃, then the industry will expand because at this price level, the quantity demanded is greater than the quantity supplied. This will create a shortage, prompting firms to increase production in order to capture the excess demand, causing the industry as a whole to expand.

Figure 6.6 -In Figure 6.6 If Price Is P₃ Then the Industry