If the supply curve shifts and the new market equilibrium occurs at a quantity of 115 units, which of the following amounts represents the real domestic output at the new equilibrium?

• A. 130 units
• B. 85 units
• C. 115 units
• D. 100 units

Answer: (C)

Verified step by step guidance

1. Understand that the real domestic output at market equilibrium is represented by the quantity where supply equals demand after any shifts in the supply curve.
2. Identify that the problem states the new market equilibrium quantity is 115 units, which means the quantity supplied equals the quantity demanded at this point.
3. Recall that the equilibrium quantity directly reflects the real domestic output because it is the amount of goods actually bought and sold in the market.
4. Recognize that the shift in the supply curve changes the equilibrium quantity, so the new equilibrium quantity (115 units) represents the updated real domestic output.
5. Conclude that the real domestic output at the new equilibrium is the quantity corresponding to the new equilibrium, which is 115 units.