Refer to the given table. $$\begin{array} { | r | r | r | }
\hline \text { Price Per Unit } & \text { Columu A Units Per Year } & \text { Colum B Units Per Year } \
\hline \$ 40 & 110 & 40 \
\hline \$ 45 & 95 & 50 \
\hline \$ 50 & 80 & 60 \
\hline \$ 55 & 65 & 70 \
\hline \$ 60 & 50 & \mathbf { 8 0 } \
\hline
\end{array}$$
Suppose the columns in this table reflect demand and supply. If the current market price is $50, then you would expect:
A)the market price to fall.
B)the market price to rise.
C)demand to decrease and supply to decrease.
D)supply to decrease.

Question

Refer to the given table. $$\begin{array} { | r | r | r | } 
\hline \text { Price Per Unit } & \text { Columu A Units Per Year } & \text { Colum B Units Per Year } \
\hline \$ 40 & 110 & 40 \
\hline \$ 45 & 95 & 50 \
\hline \$ 50 & 80 & 60 \
\hline \$ 55 & 65 & 70 \
\hline \$ 60 & 50 & \mathbf { 8 0 } \
\hline
\end{array}$$  
Suppose the columns in this table reflect demand and supply. If the current market price is $50, then you would expect:
A)the market price to fall.
B)the market price to rise.
C)demand to decrease and supply to decrease.
D)supply to decrease.

Quizplus · Accepted Answer

At a price of $50, the demand is for 80 units (Column A) while the supply is only for 60 units (Column B). This indicates a shortage in supply relative to demand, which typically leads to an increase in market price.

Refer to the Given Table Suppose the Columns in This Table Reflect Demand and Supply