25 20 15 B Price ($) 10 D New demand Supply Original demand 5 10 15 20 25 30 35 40 45 50 55 60 Quantity of hats (thousan
Posted: Thu May 19, 2022 7:25 am
- 25 20 15 B Price 10 D New Demand Supply Original Demand 5 10 15 20 25 30 35 40 45 50 55 60 Quantity Of Hats Thousan 1 (31.05 KiB) Viewed 42 times
- 25 20 15 B Price 10 D New Demand Supply Original Demand 5 10 15 20 25 30 35 40 45 50 55 60 Quantity Of Hats Thousan 2 (31.73 KiB) Viewed 42 times
The figure shows the hat market before and after a demand shitt. Based on this information, which of the following statements are correct? А After the demand increase, sellers will initially sell more hats at $8 B After the demand increase, the market immediately moves to a new equilibrium at point D C The adjustment to the new equilibrium is driven by the rent-seeking behaviour of the buyers and the sellers D The new equilibrium price may be anywhere between A and B E At point A, sellers are on the long side of the market