Asked by Demia Kelly on Jun 24, 2024
Verified
Refer to Table 4-5. If the four suppliers listed are the only suppliers in this market and the market quantity demanded is 600 cases when the price is $4.00, which of the following statements is correct?
A) The market is in equilibrium at a price of $4.00.
B) There is a shortage of 200 cases at a price of $4.00.
C) There is a surplus of 200 cases at a price of $4.00.
D) There is a shortage of 230 cases at a price of $4.00.
Market Equilibrium
Market equilibrium is the point where the supply of goods matches demand, leading to a stable market price.
- Acquire knowledge of the equilibrium price and quantity concept in a market.
- Examine data from tables and figures to ascertain market equilibria.
Verified Answer
KM
Kayla MelderJun 28, 2024
Final Answer :
A
Explanation :
The market is in equilibrium when the quantity supplied equals the quantity demanded. If the total quantity supplied by the four suppliers at $4.00 matches the market quantity demanded of 600 cases, then the market is in equilibrium at that price.
Learning Objectives
- Acquire knowledge of the equilibrium price and quantity concept in a market.
- Examine data from tables and figures to ascertain market equilibria.