Use the following to answer question(s): Demand and Supply Schedules for a Good

-(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

Question

Use the following to answer question(s): Demand and Supply Schedules for a Good
 
-(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

Quizplus · Accepted Answer

A decrease in supply by 100 units would shift the supply curve to the left. This would cause the equilibrium price to increase and the equilibrium quantity to decrease. Based on the exhibit, the new equilibrium price would be $4.00 and the new equilibrium quantity would be 160 units. Thus, the answer is D.

Use the Following to Answer Question(s): Demand and Supply Schedules