Table 4.2.2.
-Look at Table 4.2.2. Consumers learn that the rubber ducks wear out batteries quickly. As a result, demand decreases by 100 rubber ducks at each price. At the same time, input prices rise and supply 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; 300

Question

Table 4.2.2.
-Look at Table 4.2.2. Consumers learn that the rubber ducks wear out batteries quickly. As a result, demand decreases by 100 rubber ducks at each price. At the same time, input prices rise and supply 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; 300

Quizplus · Accepted Answer

When both demand and supply decrease by the same amount, the equilibrium quantity decreases, but the equilibrium price remains unchanged.

Table 4.2.2. -Look at Table 4.2.2. Consumers Learn That the Rubber Ducks