-Refer to Table 3.4. At a price of $45,
A) we would expect the price to rise because of a shortage equal to 350 units.
B) we would expect the amount purchased to fall because of a surplus equal to 350 units.
C) none of the commodity is demanded.
D) we would expect the price to fall because of a shortage equal to 350 units.
E) 350 units of the commodity are supplied.

Question

-Refer to Table 3.4. At a price of $45,
A) we would expect the price to rise because of a shortage equal to 350 units. 
B) we would expect the amount purchased to fall because of a surplus equal to 350 units. 
C) none of the commodity is demanded. 
D) we would expect the price to fall because of a shortage equal to 350 units. 
E) 350 units of the commodity are supplied.

Quizplus · Accepted Answer

At a price of $45, if there is a shortage of 350 units, it means that the quantity demanded exceeds the quantity supplied by 350 units. This situation typically leads to an increase in price as consumers compete for the limited available supply.