Question

If the price is $3.00 per frisbees, buyers would buy ____

and sellers would sell ____ frisbees.

Answer 1

Due to the increase in cost of manufacturing Frisbees, the quantity supplied falls to 150 million. If the price is still $3.00 per frisbees, buyers would buy 200 units but sellers would sell 150 frisbees. The new equilibrium should've been at $4.00.

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