​ In Exhibit  3-15, If the Market Price of Good X

question 114

Multiple Choice

​
In Exhibit  3-15, if the market price of good X is initially $.50, a movement toward equilibrium requires:

• A) no change, because an equilibrium already exists.
• B) the price to fall below $.50 and both the quantity supplied and the quantity demanded to rise.
• C) the price to remain the same, but the supply curve to shift to the left.
• D) the price to rise above $.50, the quantity supplied to rise, and the quantity demanded to fall.

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