Asked by Osama Al-bahnasi on Jul 25, 2024
Verified
The table given below shows the quantity supplied and the quantity demanded for a good at different prices.If the price of the good described in the table given below is $1.60,then there is a:
Table 4.1 Price($) Quantity demanded Quantity supplied 1100101.290301.480501.570701.66090\begin{array}{l}\text { Table } 4.1\\\begin{array} { | r | r | r | } \hline { \text { Price(\$) } } & { \begin{array} { l } \text { Quantity } \\\text { demanded }\end{array} } & { \begin{array} { l } \text { Quantity } \\\text { supplied }\end{array} } \\\hline 1 & 100 & 10 \\\hline 1.2 & 90 & 30 \\\hline 1.4 & 80 & 50 \\\hline 1.5 & 70 & 70 \\\hline 1.6 & 60 & 90 \\\hline\end{array}\end{array} Table 4.1 Price($) 11.21.41.51.6 Quantity demanded 10090807060 Quantity supplied 1030507090
A) shortage of 30 units.
B) surplus of 30 units.
C) shortage of 20 units.
D) surplus of 20 units.
E) surplus of 10 units.
Quantity Supplied
The amount of a good or service that producers are willing and able to sell at a given price over a certain period.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.
Surplus
The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific price.
- Grasp the principles of excess supply (surplus) and excess demand (shortage) and how they lead to adjustments in market prices.
Verified Answer
MA
Melissa AmadorJul 28, 2024
Final Answer :
B
Explanation :
At a price of $1.60, the quantity demanded is 60 units and the quantity supplied is 90 units, resulting in a surplus of 30 units.
Learning Objectives
- Grasp the principles of excess supply (surplus) and excess demand (shortage) and how they lead to adjustments in market prices.