(Appendix) The new equilibrium price is

Question

Quizplus · Accepted Answer

In equilibrium, quantity demanded is equal to quantity supplied. At a price of $10, the quantity demanded is only 4 units, while the quantity supplied is 12 units. This means there is excess supply, causing suppliers to lower the price in order to sell their goods. As the price decreases, demand increases and supply decreases, until they are equal at the new equilibrium price of $15. Therefore, the best choice is C)15.

(Appendix) the New Equilibrium Price Is