TABLE 4-5

-Refer to Table 4-5. At $10, what is occurring in the market for compact discs?

Question

TABLE 4-5
 
-Refer to Table 4-5. At $10, what is occurring in the market for compact discs?

Quizplus · Accepted Answer

At a price of $10, the quantity demanded for compact discs is 55 million while the quantity supplied is only 47.5 million. This means there is a shortage of 7.5 million compact discs (quantity demanded - quantity supplied = 55 million - 47.5 million = 7.5 million). Therefore, the correct answer is D, a shortage of 7.5 million compact discs.

TABLE 4-5 -Refer to Table 4-5. at $10, What Is Occurring in What