Use the figure below to answer the following questions.
Table 3.5.2
-Refer to Table 3.5.2.If the price is set at $1.30 per cup, there is _______ leading to a price _______.

Question

Use the figure below to answer the following questions.
Table 3.5.2 
-Refer to Table 3.5.2.If the price is set at $1.30 per cup, there is _______ leading to a price _______.

Quizplus · Accepted Answer

At a price of $1.30, the quantity supplied would exceed the quantity demanded, creating a surplus. In response to a surplus, prices typically fall to encourage more demand and reduce the excess supply.

Use the Figure Below to Answer the Following Questions