The market for blankets is shown here.

Which of the following explains why $\$ 7$ is not an equilibrium price in the market for blankets?

Choose 1 answer:
(A) The supply is greater than the demand
(B) The quantity demanded is greater than the quantity supplied
(c) The quantity supplied is greater than the quantity demanded
(D) The quantity demanded and quantity supplied are equal
(E) The demand is greater than the supply

Question

The market for blankets is shown here.

Which of the following explains why $\$ 7$ is not an equilibrium price in the market for blankets?

Choose 1 answer:
(A) The supply is greater than the demand
(B) The quantity demanded is greater than the quantity supplied
(c) The quantity supplied is greater than the quantity demanded
(D) The quantity demanded and quantity supplied are equal
(E) The demand is greater than the supply

Accepted Answer

∻Solution∻ ‖ a ⋮ Equilibrium Price: The equilibrium price is where the quantity demanded equals the quantity supplied. ‖‖ b ⋮ Analysis of $7 Price: At $7, the quantity demanded (6) is greater than the quantity supplied (3). ‖ ∻Answer∻ ⚹ (B) The quantity demanded is greater than the quantity supplied ⚹ ∻Key Concept∻ ⚹ Equilibrium Price ⚹ ∻Explanation∻ ⚹ The equilibrium price is the price at which the quantity demanded equals the quantity supplied. At $7, the quantity demanded exceeds the quantity supplied, indicating that $7 is not the equilibrium price. ⚹◊What would happen to the market for blankets if the price was set at $7?⍭ Generate me a similar question◊

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