(Table) Using the data in the table for the market for lattes, at a price of $2, there is a _____ and the price will _____.

Question

Quizplus · Accepted Answer

At a price of $2, the quantity demanded is 280 lattes and the quantity supplied is 240 lattes, resulting in a shortage of 40 lattes. When there is a shortage, the price tends to rise in order to maintain equilibrium in the market. Therefore, the best choice is A, shortage; rise.

(Table) Using the Data in the Table for the Market