9 is d. now i just need 3

its something like that lol

ahh gotcha. the areas and stuff, I was leaning towards that but I wasn't too sure.

thanks guys but only 8/10 !!

7/3 were wrong

3) The equilibrium price is $8. Simply draw supply and demand curves according to the numbers provided and determine the point at which they intersect. This is the equilibrium price and quantity.

7) CS should decrease. However, if the question is really picky and wants to get at the idea that decreases in income are exogenous then it can be argued that a decrease in income will not directly cause a decrease in CS, but rather that the resulting decrease in CS is a byproduct of income reduction. For a Principles of Micro class, however, the second explanation is too nuanced and the correct answer ought to be D.

This post was edited by smohan123 on Apr 13 2010 09:03am