Figure 3.12 Alt text for Figure 3.12: In figure 3.23, a graph plotting intersecting supply and demand curves represents the market for coffee grinders.
Long description for Figure 3.12: The x-axis is labelled, Quantity, with the values 0, 10, 20, 50, 75, and 100 marked.The y-axis is labelled, Price, with the values 0, 15, 25, and 50 dollars marked.Curve D is a straight line which slopes down from the top left corner to the bottom right corner.Curve S is a straight line which begins in the bottom left corner and slopes up to the top right corner.The equilibrium of the 2 curves is (50,25).The point plotted on curve S to the left of equilibrium is (20,15).The point plotted on curve D to the right of point of equilibrium is (75,15).The point plotted to the right of equilibrium on curve S is (100,50).The point plotted to the right of the equilibrium on curve D is (10,50).
-Refer to Figure 3.12.The figure above represents the market for coffee grinders.Compare the conditions in the market when the price is $15 and when the price is $21.Which of the following describes how the market differs at these prices?
A)At each price there is a shortage; the shortage is greater at $15 than at $21.
B)The difference between quantity supplied and quantity demanded is greater at $21 than at $15.
C)At each price there is a shortage; firms will raise the equilibrium price in order to eliminate the shortage.
D)At each price the demand for coffee grinders exceeds the supply of coffee grinders.

Question

Figure 3.12  Alt text for Figure 3.12: In figure 3.23, a graph plotting intersecting supply and demand curves represents the market for coffee grinders.
Long description for Figure 3.12: The x-axis is labelled, Quantity, with the values 0, 10, 20, 50, 75, and 100 marked.The y-axis is labelled, Price, with the values 0, 15, 25, and 50 dollars marked.Curve D is a straight line which slopes down from the top left corner to the bottom right corner.Curve S is a straight line which begins in the bottom left corner and slopes up to the top right corner.The equilibrium of the 2 curves is (50,25).The point plotted on curve S to the left of equilibrium is (20,15).The point plotted on curve D to the right of point of equilibrium is (75,15).The point plotted to the right of equilibrium on curve S is (100,50).The point plotted to the right of the equilibrium on curve D is (10,50).
-Refer to Figure 3.12.The figure above represents the market for coffee grinders.Compare the conditions in the market when the price is $15 and when the price is $21.Which of the following describes how the market differs at these prices?
A)At each price there is a shortage; the shortage is greater at $15 than at $21. 
B)The difference between quantity supplied and quantity demanded is greater at $21 than at $15. 
C)At each price there is a shortage; firms will raise the equilibrium price in order to eliminate the shortage. 
D)At each price the demand for coffee grinders exceeds the supply of coffee grinders.

Quizplus · Accepted Answer

At a lower price ($15), the quantity demanded exceeds the quantity supplied by a larger margin than at a higher price ($21), indicating a greater shortage at the lower price. This is a basic principle of supply and demand: as price decreases, demand typically increases (leading to a larger shortage if supply doesn't match), and as price increases, the quantity demanded usually decreases, reducing the shortage.

Figure 312 Alt Text for Figure 3