Question

The current price of blue jeans is 30 per pair, but the equilibrium price of blue jeans is25 per pair. As a result, which of the following statements is not true?

1) The current price of blue jeans is higher than the equilibrium price.
2) The current price of blue jeans is lower than the equilibrium price.
3) The current price of blue jeans is equal to the equilibrium price.
4) The current price of blue jeans is not related to the equilibrium price.

Answer 1

The statement that is not true is: 2) The current price of blue jeans is lower than the equilibrium price.

Step-by-step explanation:

When comparing the current price of blue jeans, which is $30 per pair, to the equilibrium price of $25 per pair, we can evaluate the accuracy of the following statements:

1. The current price of blue jeans is higher than the equilibrium price.
2. The current price of blue jeans is lower than the equilibrium price.
3. The current price of blue jeans is equal to the equilibrium price.
4. The current price of blue jeans is not related to the equilibrium price.

Statement 1 is true because $30 is indeed higher than $25. Statement 2 is not true because the current price is not lower; it is higher. Statement 3 is also not true because the current price is not equal to the equilibrium price, it's higher. Lastly, statement 4 is not true as the current price is related to the equilibrium price -- it is a deviation from the point where the supply and demand balance each other. Therefore, the statement that is not true is: 2) The current price of blue jeans is lower than the equilibrium price.