Use the table below to answer the following questions.
Table 3.4.1

-Refer to Table 3.4.1.At a price of $3 a unit
A)the market is in equilibrium.
B)there is a 180-unit surplus and a tendency for the price to fall.
C)there is a 180-unit shortage and a tendency for the price to rise.
D)there is a 180-unit shortage and a tendency for the price to fall.
E)there is a 420-unit shortage and a tendency for the price to rise.

Question

Use the table below to answer the following questions.
Table 3.4.1
 
-Refer to Table 3.4.1.At a price of $3 a unit
A)the market is in equilibrium. 
B)there is a 180-unit surplus and a tendency for the price to fall. 
C)there is a 180-unit shortage and a tendency for the price to rise. 
D)there is a 180-unit shortage and a tendency for the price to fall. 
E)there is a 420-unit shortage and a tendency for the price to rise.

Quizplus · Accepted Answer

At a price of $3 a unit, the quantity demanded is 270 units and the quantity supplied is only 90 units. This creates a 180-unit shortage (quantity demanded - quantity supplied = 270 - 90 = 180) and a tendency for the price to rise as consumers compete to purchase the limited supply.

Use the Table Below to Answer the Following Questions