Suppose the market for the magazine is in equilibrium. Some students insist on raising the cover price by $1 and printing the same quantity. What is likely to happen?
A. The demand for the magazine will go up.
B. There will be a shortage of 150 magazines.
C. There will be a surplus of 100 magazines.
6 answers
Look at a typical demand curve. As price goes up, demand goes down. You will not sell as many magazines at the higher price, probably.
Huh???
Don't you understand Damon's explanation?
Don't you understand Damon's explanation?
That's right, Krystal/Anonymous.
so the demand for magazine will not go up because the price is too high.
Right.
so there for there will be a surplus of 100 magazines?
1 answer