Question

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.
D) The surplus will be greater than their sales.

Answer 1

The answer to a market for the magazine which is in equilibrium and some students insist on raising the cover price by$1 and printing the same quantity would likely be The demand for the magazine will go up. It is letter A.