Refer to the information provided in Figure 3.17 below to answer the questions that follow. Figure 3.17
-Refer to Figure 3.17. If this market is unregulated and the price is currently $90, you would expect that the price of sunglasses would

Question

Refer to the information provided in Figure 3.17 below to answer the questions that follow.  Figure 3.17
-Refer to Figure 3.17. If this market is unregulated and the price is currently $90, you would expect that the price of sunglasses would

Quizplus · Accepted Answer

At a price of $90, there is excess supply in the market, meaning that firms are producing more sunglasses than consumers are willing to buy. In order to sell their surplus sunglasses, firms will have to lower the price. The price will continue to fall until it reaches a level where quantity demanded equals quantity supplied, which is $60 in this case. Therefore, the price of sunglasses would fall to $60.

Refer to the Information Provided in Figure 3