Refer to the Figure Below: Let Supply Remain Constant

question 32

Multiple Choice

Refer to the figure below: Let supply remain constant at S; an increase in the price of a substitute good causes consumers to be willing and able to buy 150 more units of the good at each price in the list than they were when demand was D.Which of the following statements is (are) true?

• A)At the original equilibrium price there will be a shortage of 150.
• B)At the original equilibrium price there will be a surplus of 150
• C)At the new equilibrium P = $6 and Q = 450.
• D)At the new equilibrium P = $7 and Q = 400.
• E)both a and d

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Definitions:

Symptom

A physical or mental feature that indicates a condition or disease.

Stimulant Drug

A type of drug that increases activity in the body or brain, leading to increased alertness, attention, and physical energy.

Cocaine

Cocaine is a powerful stimulant drug derived from the leaves of the coca plant, which is illegal in many countries and can lead to severe addiction and health problems.

Neural Activity

The electrical and chemical processes that occur within neurons, contributing to brain functions such as thought and action.