Economics
posted by Anonymous .
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.

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.

B?

Huh???
Don't you understand Damon's explanation? 
C

That's right, Krystal/Anonymous.

so the demand for magazine will not go up because the price is too high.

Right.

so there for there will be a surplus of 100 magazines?
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