Homework Help: Economics

Posted by Anonymous on Saturday, June 2, 2012 at 1:53pm.

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.

Economics - Damon, Saturday, June 2, 2012 at 3:14pm
Look at a typical demand curve. As price goes up, demand goes down. You will not sell as many magazines at the higher price, probably.
Economics - Anonymous, Saturday, June 2, 2012 at 5:20pm
B?
Economics - Ms. Sue, Saturday, June 2, 2012 at 5:25pm
Huh???

Don't you understand Damon's explanation?
Economics - Krystal, Saturday, June 2, 2012 at 5:34pm
C
Economics - Ms. Sue, Saturday, June 2, 2012 at 5:43pm
That's right, Krystal/Anonymous.
Economics - Anonymous, Saturday, June 2, 2012 at 5:46pm
so the demand for magazine will not go up because the price is too high.
Economics - Ms. Sue, Saturday, June 2, 2012 at 6:05pm
Right.

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