Consider the make for a life-saving medical product that at least ?0% of the pop
ID: 1224377 • Letter: C
Question
Consider the make for a life-saving medical product that at least ?0% of the population requires in order to continue living II the supply o(this product were to fall sharper Am to a natural disaster. what would happen' The equilibrium price and quart the product would tall by a lot The equilibrium price o4 the product would rise dramatically while the equilibrium quantity would all by .a relatively small amount The equilibrium peace of the product would rise, relatively small amount while the equilibrium quantity would fall dramatic allyExplanation / Answer
If the supply of life-saving product were to fall sharply due to natural disaster then the equibrium price of the product would rise dramatically while the equilibrium quantity would fall by a relatively small amount.
Explanation:- Life-saving products are necessary goods. If the Supply of these products were to fall sharply due to natural disaster, then the Prices of these goods will definitely increase but their demand will show a very little change i.e., the quantity will decrease but not to a high extent. There will be a slight fall in equilibrium quantity of these goods due to fall in their supply because of natural disaster.
Conclusion:- If the supply of life-saving product were to fall sharply due to natural disaster then the equibrium price of the product would rise dramatically while the equilibrium quantity would fall by a relatively small amount. [Option 2]