Look at the graph. A medical device company is selling a new diagnostic tool at the equilibrium price of $15. The company hires a marketing firm to run an advertising campaign to publicize recent positive findings regarding the effectiveness of the tool. Based on the graph, what would be the result?. . A.A new equilibrium point, because the demand would increase. . B.A shortage, because the price is higher than equilibrium price. . C.A surplus, because the price is higher than equilibrium price. . D.Selling fewer devices, because demand would decrease
The advertising done by the marketing firm for the medical device company will likely increase their sales. This in turn will create a new equilibrium point in the graph presented. Thus, the answer to the question above is letter A.
