Exhibit 3-1
-Consider the market represented by the schedule in Exhibit 3-1. At equilibrium,
A)there is a surplus of 500 units.
B)there is a shortage of 500 units.
C)the market price is $4 per unit.
D)the market price is $1 per unit and the quantity traded is 100 units.
E)500 units are traded at a price of $3 per unit.

Question

Exhibit 3-1 
-Consider the market represented by the schedule in Exhibit 3-1. At equilibrium,
A)there is a surplus of 500 units. 
B)there is a shortage of 500 units. 
C)the market price is $4 per unit. 
D)the market price is $1 per unit and the quantity traded is 100 units. 
E)500 units are traded at a price of $3 per unit.

Quizplus · Accepted Answer

At equilibrium, the quantity supplied equals the quantity demanded. The statement that 500 units are traded at a price of $3 per unit suggests that this is the point where supply and demand are balanced, indicating equilibrium.

Exhibit 3-1 -Consider the Market Represented by the Schedule in Exhibit 3-1