Asked by Marisa Belber on Jun 04, 2024
Verified
When the supply of 35 mm cameras increases,the new market equilibrium as compared to the old equilibrium will have
A) a surplus of cameras.
B) no change in equilibrium price and a higher equilibrium quantity.
C) a higher equilibrium quantity and a lower equilibrium price.
D) a higher equilibrium quantity and a higher equilibrium price.
Market Equilibrium
The state in which market supply equals market demand, resulting in stable prices where producers and consumers agree.
Equilibrium Price
The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.
- Describe the influence of supply and demand in defining market equilibrium and determining the cost of goods.
- Evaluate the effects of changes in supply and demand on market equilibrium, including shifts in demand and supply curves.
Verified Answer
KP
Kaitie PerinJun 11, 2024
Final Answer :
C
Explanation :
An increase in supply will shift the supply curve to the right, resulting in a new equilibrium point where the quantity demanded will increase and the price will decrease. Therefore, there will be a higher equilibrium quantity and a lower equilibrium price.
Learning Objectives
- Describe the influence of supply and demand in defining market equilibrium and determining the cost of goods.
- Evaluate the effects of changes in supply and demand on market equilibrium, including shifts in demand and supply curves.