Use the figure below to answer the following questions.
Table 3.5.2
Demand and Supply Schedules for Cups of Coffee each day at CoolU

-Refer to Table 3.5.2.If the price is set at $0.80 per cup,there is ________ leading to a price ________.
A)a shortage;rise
B)a shortage;fall
C)a surplus;rise
D)a surplus;fall
E)an equilibrium;rise

Question

Use the figure below to answer the following questions.
Table 3.5.2
Demand and Supply Schedules for Cups of Coffee each day at CoolU
 
-Refer to Table 3.5.2.If the price is set at $0.80 per cup,there is ________ leading to a price ________.
A)a shortage;rise 
B)a shortage;fall 
C)a surplus;rise 
D)a surplus;fall 
E)an equilibrium;rise

Quizplus · Accepted Answer

At $0.80 per cup, the quantity demanded is 300 cups while the quantity supplied is only 200 cups. This creates a shortage of 100 cups, which leads to a rise in price as consumers compete for the limited supply available.

Use the Figure Below to Answer the Following Questions