DEMAND AND SUPPLY Use the graph below to answer questions 1 through 4. Price ($) Supply 4 3 1 Demand 200 400 600 800 Quantity Quantity demanded and quantity supplied are equal when the price is equal...

Question 3

Extracted text: DEMAND AND SUPPLY Use the graph below to answer questions 1 through 4. Price ($) Supply 4 3 1 Demand 200 400 600 800 Quantity Quantity demanded and quantity supplied are equal when the price is equal to: 1. $1. a. b. $2. $3. C. d. $4. 2. If the price in this market is set at $2, a shortage; 200 shortage; 400 of units will result. a. surplus; 200 surplus; 400 C. b. d. 3. If the price in this market is set at $4, a shortage; 200 shortage; 400 of units will result. a. surplus; 200 surplus; 400 C. b. d. 4. If, at the current price, quantity demanded is equal to 400 units and quantity supplied is equal to 800 units, then price will: increase, causing quantity demanded to fall and quantity supplied to rise. increase, causing quantity demanded to rise and quantity supplied to fall. decrease, causing quantity demanded to fall and quantity supplied to rise. decrease, causing quantity demanded to rise and quantity supplied to fall. a. b. C. d. 67 Chapter 4 Assignments 2.