(Table: The Lemonade Market)Use Table: The Lemonade Market.If the price of lemonade is $1.25 per cup,we expect to see a:
A)rising price to eliminate the shortage.
B)rising price to eliminate the surplus.
C)falling price to eliminate the shortage.
D)market in equilibrium.

Question

(Table: The Lemonade Market)Use Table: The Lemonade Market.If the price of lemonade is $1.25 per cup,we expect to see a: 
A)rising price to eliminate the shortage. 
B)rising price to eliminate the surplus. 
C)falling price to eliminate the shortage. 
D)market in equilibrium.

Quizplus · Accepted Answer

At a price of $1.25 per cup, the quantity demanded (150 cups) is equal to the quantity supplied (150 cups), indicating that the market is in equilibrium. Therefore, there is no shortage or surplus of lemonade at this price.

(Table: the Lemonade Market)Use Table: the Lemonade Market