Suppose that the following table shows the supply and demand schedules for Arabian light crude oil on the free market: $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Price } \
\text { (Dalars/barrel) }
\end{array} & \begin{array} { c }
\text { Quantity demanded (mil. } \
\text { barrels per day) }
\end{array} & \begin{array} { c }
\text { Quantity Supplied (mil. } \
\text { barrels per day) }
\end{array} \
\hline 26 & 14 & 10 \
\hline 27 & 13 & 11 \
\hline 28 & 12 & 12 \
\hline 29 & 11 & 13 \
\hline 30 & 10 & 14 \
\hline
\end{array}$$ Given the information in the table, the only price at which there is neither shortage nor surplus is:
A) $26 per barrel.
B) $27 per barrel.
C) $28 per barrel.
D) $29 per barrel.

Question

Suppose that the following table shows the supply and demand schedules for Arabian light crude oil on the free market: $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (Dalars/barrel) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded (mil. } \
\text { barrels per day) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied (mil. } \
\text { barrels per day) }
\end{array} \
\hline 26 & 14 & 10 \
\hline 27 & 13 & 11 \
\hline 28 & 12 & 12 \
\hline 29 & 11 & 13 \
\hline 30 & 10 & 14 \
\hline
\end{array}$$ Given the information in the table, the only price at which there is neither shortage nor surplus is:
A) $26 per barrel.
B) $27 per barrel.
C) $28 per barrel.
D) $29 per barrel.

Quizplus · Accepted Answer

At $28 per barrel, the quantity demanded equals the quantity supplied (12 million barrels per day), indicating market equilibrium with no shortage or surplus.

Suppose That the Following Table Shows the Supply and Demand