Ask Question
BusinessBusiness
22 March, 12:13

Assume in a competitive market that price is initially below the equilibrium level. We can predict that price will A. decrease, quantity demanded will decrease, and quantity supplied will increase. B. decrease and quantity demanded and quantity supplied will both decrease. C. increase, quantity demanded will increase, and quantity supplied will decrease. D. increase, quantity demanded will decrease, and quantity supplied will increase.

+3
Answers (1)
  1. 22 March, 16:07
    0
    The correct answer is option D.

    Explanation:

    In a competitive market, the initial price is lower than the equilibrium price. When the price is lower than the equilibrium price. The quantity demanded will be greater. The quantity supplied will be smaller. There will be a shortage in the market.

    This will cause the market price to increase. The quantity demanded will decrease due to the increase in the price, while the quantity supplied will increase.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume in a competitive market that price is initially below the equilibrium level. We can predict that price will A. decrease, quantity ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
You explain to your roommate Surya, who makes beaded headbands, about an economic theory which asserts that consumers will purchase more of a product at lower prices than they will at higher prices.
Answers (1)
Thom owes $5,000 on his credit card. The credit card carries an APR of 17.3 percent compounded monthly.
Answers (1)
Producers' total revenue will decrease if A. The price rises and demand is inelastic. B. income increases and the good is a normal good. C. the price rises and demand is elastic. D. income falls and the good is an inferior good.
Answers (1)
The u. s. postal service is the best representation of what type of bureaucracy?
Answers (1)
13-1. Liquidated Damages. Carnack contracts to sell his house and lot to Willard for $100,000. The terms of the contract call for Willard to make a deposit of 10 percent of the purchase price as a down payment.
Answers (1)
New Questions in Business
Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models.
Answers (1)
When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off. a. true b. false?
Answers (1)
The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets.
Answers (1)
Services had net income for the month of October of $ 23 comma 040. Assets as of the beginning and end of the month totaled $ 369 comma 000 , and $ 399 comma 000 , respectively. Calculate Matured Water Services' ROA for the month of October.
Answers (1)
Symbic Foods, a chain of fast food restaurants, has included a drop-down menu on its main Web site. With this drop-down menu, people can view their country-specific Web site, which contains information about the dishes that Symbic Foods serves in
Answers (1)
Home » Business » Assume in a competitive market that price is initially below the equilibrium level. We can predict that price will A. decrease, quantity demanded will decrease, and quantity supplied will increase. B.
Sign Up Forgot Password?