Use the following to answer questions: Table: Equilibrium Adjustment $$\begin{array} { c c c }
\hline \text { Price } & \text { Quantity Demanded } & \text { Quantity Supplied } \
\hline \$ 10 & 100 & 160 \
8 & 120 & 145 \
6 & 130 & 130 \
4 & 140 & 115 \
2 & 150 & 100 \
\hline
\end{array}$$
-(Table: Equilibrium Adjustment) Refer to the table. If the price in the free market is $2, then a:
A) surplus of 50 units would exist, and price would fall.
B) surplus of 50 units would exist, and price would rise.
C) shortage of 50 units would exist, and price would rise.
D) shortage of 50 units would exist, and price would fall.

Question

Use the following to answer questions: Table: Equilibrium Adjustment $$\begin{array} { c c c } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Quantity Supplied } \
\hline \$ 10 & 100 & 160 \
8 & 120 & 145 \
6 & 130 & 130 \
4 & 140 & 115 \
2 & 150 & 100 \
\hline
\end{array}$$
-(Table: Equilibrium Adjustment) Refer to the table. If the price in the free market is $2, then a:
A) surplus of 50 units would exist, and price would fall.
B) surplus of 50 units would exist, and price would rise.
C) shortage of 50 units would exist, and price would rise.
D) shortage of 50 units would exist, and price would fall.

Quizplus · Accepted Answer

At a price of $2, the quantity demanded is 150 and the quantity supplied is 100, resulting in a shortage of 50 units. This shortage would typically cause the price to rise.

Use the Following to Answer Questions: Table: Equilibrium Adjustment -(Table: Equilibrium Adjustment) Refer to the Table