26. Suppose that the equilibrium price of blackberries is S3 per pound, and the price of...

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26. Suppose that the equilibrium price of blackberries is S3 per pound, and the price of black raspberries (a substitute for blackberries) increases. What happens in the market for blackberries? An excess supply of blackberries at $3 per pound leads to an increase in quantity demanded and a decrease in quantity supplied. The demand curve for blackberries decreases, reducing the equilibrium price and raising the equilibrium quantity. O The demand curve for blackberries shifts to the right, reflecting an increase in both the equilibrium price and the quantity. An excess demand of blackberries at $3 per pound results in a new equilibrium price that is less than $3 per pound. 26. Suppose that the equilibrium price of blackberries is S3 per pound, and the price of black raspberries (a substitute for blackberries) increases. What happens in the market for blackberries? An excess supply of blackberries at $3 per pound leads to an increase in quantity demanded and a decrease in quantity supplied. The demand curve for blackberries decreases, reducing the equilibrium price and raising the equilibrium quantity. O The demand curve for blackberries shifts to the right, reflecting an increase in both the equilibrium price and the quantity. An excess demand of blackberries at $3 per pound results in a new equilibrium price that is less than $3 per pound.

Answer rating: 100% (QA)

Option 3 is correct The demand curve for BlackBerry shift to right ref... View the full answer