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-If the Market Price Falls from P₀ to P₁ in the Above

Question 425

Multiple Choice

-If the market price falls from P₀ to P₁ in the above figure, then A) a new equilibrium quantity is established. B) there is a shortage equal to the distance EF. C) there will be a further tendency for price to fall. D) there is a surplus of goods on the market equal to the distance Q₁, Q₂.
-If the market price falls from P₀ to P₁ in the above figure, then


A) a new equilibrium quantity is established.
B) there is a shortage equal to the distance EF.
C) there will be a further tendency for price to fall.
D) there is a surplus of goods on the market equal to the distance Q₁, Q₂.

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