Consider the market for product ABC, when the price is at Php 12, quantity demanded is 6 units and quantity supplied is 3 units. An eight pesos increase in the price would change quantity demanded by 2 units and quantity supplied by 4 units. How much is the gap at price of Php 11? A one peso decrease in the price of the product would _ quantity demanded by _ units. How much is the equilibrium price? How many units is the quantity supplied when price is zero?  Choices: shortage ; 3.75 6 decrease ; 0.25 shortage ; 1.5 36 increase ; 0.5 -3 9 increase ; 0.25 5 decrease ; 0.5 surplus ; 1.5 16 surplus ; 3.75

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.