Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU

-Refer to Table 3.5.3.Suppose that the price of a designer sport t-shirt is $6.The market has ________ leading to ________.
A)an equilibrium;no change in the price
B)a shortage;a fall in the price
C)a shortage;a rise in the price
D)a surplus;a fall in the price
E)a surplus;a rise in the price

Question

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
 
-Refer to Table 3.5.3.Suppose that the price of a designer sport t-shirt is $6.The market has ________ leading to ________.
A)an equilibrium;no change in the price 
B)a shortage;a fall in the price 
C)a shortage;a rise in the price 
D)a surplus;a fall in the price 
E)a surplus;a rise in the price

Quizplus · Accepted Answer

At the price of $6, the quantity demanded is 400 and the quantity supplied is 300, resulting in a shortage of 100 units. This will lead to an increase in the price to reach equilibrium, as consumers compete to purchase the limited available quantity of designer sport t-shirts. Therefore, the market has a shortage leading to a rise in the price.

Use the Table Below to Answer the Following Questions