The table shown depicts the demand and supply schedules of a good. At a price of $1.00:
A) a shortage (excess demand) will exist.
B) a surplus (excess supply) will exist.
C) more is being supplied than demanded.
D) the market is in equilibrium.

Question

The table shown depicts the demand and supply schedules of a good. At a price of $1.00:
A) a shortage (excess demand) will exist. 
B) a surplus (excess supply) will exist. 
C) more is being supplied than demanded. 
D) the market is in equilibrium.

Quizplus · Accepted Answer

At a price of $1.00, the quantity demanded is 200 units and the quantity supplied is 150 units, resulting in a shortage of 50 units (excess demand). Therefore, A is the correct choice.

The Table Shown Depicts the Demand and Supply Schedules of a Good