Look at the graph. A bookstore owner increases the price of art books to $25. Which of these would occur?
A higher equilibrium point, because demand and price increased
A lower equilibrium point, because the supply will increase
A shortage, because the price is lower than equilibrium price
A surplus, because the price is higher than equilibrium price
Only answer if you really know the answer please!
A surplus, because the price is higher than equilibrium price
Explanation:
By raising the price of books to $ 25 the seller puts the price above the equilibrium price. This means that everything else consents, the supply will be 2500, while the demand will be 500, leaving a surplus of 2000.
