Asked by Ambrianna Jones on Jun 13, 2024
Verified
(Table: The Lemonade Market) Use Table: The Lemonade Market.If the price of lemonade is $1.25 per cup,we expect to see a: 
A) rising price to eliminate the shortage.
B) rising price to eliminate the surplus.
C) falling price to eliminate the shortage.
D) market in equilibrium.
Surplus
A situation in which the quantity of a good or service supplied exceeds the quantity demanded, often leading to a price reduction.
Shortage
A situation in which the demand for a product exceeds the supply available at a specific price.
Lemonade Market
A hypothetical or real market scenario used to illustrate the principles of supply and demand, usually involving the sale of lemonade.
- Investigate how establishing prices influences the equilibrium between supply and demand in the market.
Verified Answer
JP
Jesus PachekoJun 16, 2024
Final Answer :
D
Explanation :
At a price of $1.25 per cup, the quantity demanded (150 cups) is equal to the quantity supplied (150 cups), indicating that the market is in equilibrium. Therefore, there is no shortage or surplus of lemonade at this price.
Learning Objectives
- Investigate how establishing prices influences the equilibrium between supply and demand in the market.