Refer to Table 3.1 to answer the following question Table 3.1 Individual Demand and Supply Schedules
$\begin{array}{l}
\quad\quad\quad\quad\quad\quad\text { Quartity Dernarded by }\
\begin{array} { | r | r | r | r | c | }
\hline { \text { Price } } & { \text { Alejandro } } & { \text { Ben } } & \text { Carl } & \text { Market } \
\hline \$ 8.00 & 8 & 4 & 2 & \
\hline 6.00 & 12 & 4 & 4 & \
\hline 4.00 & 20 & 4 & 6 & \
\hline 2.00 & 22 & 4 & 6 & \
\hline
\end{array}
\end{array}$
$\begin{array}{l}
\quad\quad\quad\quad\quad\quad\text { Quartity Supplied by }\
\begin{array} { | r | r | r | r | c | }
\hline { \text { Price } } & { \text { Avery } } & { \text { Brandon } } & \text { Cassandra} &\quad\quad\quad\quad \
\hline \$ 8.00 & 60 & 4 &6 & \
\hline \$6.00 & 42 & 4 & 4 & \
\hline \$4.00 & 24 & 4 & 2 & \
\hline\$ 2.00 &6 & 4 & 0 & \
\hline
\end{array}
\end{array}$
In Table 3.1,if government held the price at $3,
A)The government would be setting an effective price floor.
B)The shortage would be the same as the quantity demanded.
C)There would be a shortage.
D)The market would be in equilibrium.

Question

Refer to Table 3.1 to answer the following question Table 3.1 Individual Demand and Supply Schedules
$\begin{array}{l}
\quad\quad\quad\quad\quad\quad\text { Quartity Dernarded by }\
\begin{array} { | r | r | r | r | c | } 
\hline { \text { Price } } &  { \text { Alejandro } } & { \text { Ben } } & \text { Carl } & \text { Market } \
\hline \$ 8.00 & 8 & 4 & 2 & \
\hline 6.00 & 12 & 4 & 4 & \
\hline 4.00 & 20 & 4 & 6 & \
\hline 2.00 & 22 & 4 & 6 & \
\hline
\end{array}
\end{array}$ 
 $\begin{array}{l}
\quad\quad\quad\quad\quad\quad\text { Quartity Supplied by }\
\begin{array} { | r | r | r | r | c | } 
\hline { \text { Price } } &  { \text { Avery } } & { \text { Brandon } } & \text { Cassandra} &\quad\quad\quad\quad \
\hline \$ 8.00 & 60 & 4 &6 & \
\hline \$6.00 & 42 & 4 & 4 & \
\hline \$4.00 & 24 & 4 & 2 & \
\hline\$ 2.00 &6 & 4 & 0 & \
\hline
\end{array}
\end{array}$
 In Table 3.1,if government held the price at $3,
A)The government would be setting an effective price floor.
B)The shortage would be the same as the quantity demanded.
C)There would be a shortage.
D)The market would be in equilibrium.

Quizplus · Accepted Answer

At a price of $3, which is not explicitly shown in the table but can be inferred to be between the prices of $2.00 and $4.00, the quantity demanded would be higher than the quantity supplied. This is because, as price decreases, the quantity demanded typically increases while the quantity supplied decreases, leading to a shortage where the quantity demanded exceeds the quantity supplied.

Refer to Table 3 In Table 3