Question

Suppose the quantity demanded for a security is
BD= 150 − 1b,
and the quantity supplied of the security is
BS= 50 + 1b,
where bis the price of the security in dollars. Suppose that the supply curve shifts to
BS= 75 + 1b.
The equilibrium quantity of the security
a. rises by 12.5.
b. rises by 2.5.
c. falls by 2.5.
d. falls by 12.5.

Answer

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