Figure 4.2.2
The Market for Robotic Rubber Ducks

-Look at Table 4.2.2. Consumers learn that rubber ducks wear out batteries quickly. As a result, demand decreases by 100 rubber ducks at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ rubber ducks.
A) 70; 450
B) 70; 350
C) 50; 450
D) 50; 350
E) 60; 400

Question

Figure 4.2.2
The Market for Robotic Rubber Ducks
  
-Look at Table 4.2.2. Consumers learn that rubber ducks wear out batteries quickly. As a result, demand decreases by 100 rubber ducks at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ rubber ducks.
A) 70; 450 
B) 70; 350 
C) 50; 450 
D) 50; 350 
E) 60; 400

Quizplus · Accepted Answer

When demand decreases by 100 rubber ducks at each price, the demand curve shifts leftward. This leads to a new equilibrium with lower price and quantity. Looking at the table, when quantity demanded falls from 450 to 350, the equilibrium price falls from $70 to $50. Hence, the new equilibrium price is $50 and the new equilibrium quantity is 350. Therefore, the correct answer is D.

Figure 4.2.2 The Market for Robotic Rubber Ducks