Table 4.3
$$\begin{array} { | c | c | c | }
\hline \text { Price (\$) } & \text { Quantity demanded } & \text { Quantity supplied } \
\hline 1.0 & 100 & 10 \
\hline 1.20 & 90 & 30 \
\hline 1.40 & 80 & 50 \
\hline 1.50 & 70 & 70 \
\hline 1.60 & 60 & 90 \
\hline
\end{array}$$
-The table given below shows the quantity supplied and the quantity demanded of a good at different prices. If the price of the good described in the table below is $1.60, then an economist would expect the _____

Question

Table 4.3
 $$\begin{array} { | c | c | c | } 
\hline \text { Price (\$) } & \text { Quantity demanded } & \text { Quantity supplied } \
\hline 1.0 & 100 & 10 \
\hline 1.20 & 90 & 30 \
\hline 1.40 & 80 & 50 \
\hline 1.50 & 70 & 70 \
\hline 1.60 & 60 & 90 \
\hline
\end{array}$$
-The table given below shows the quantity supplied and the quantity demanded of a good at different prices. If the price of the good described in the table below is $1.60, then an economist would expect the _____

Quizplus · Accepted Answer

At the given price, $1.60, there is excess supply as quantity supplied (90 units) is greater than quantity demanded (60 units). As a result, suppliers will face unsold inventory and may have to lower the price to increase demand. Thus, the economist would expect the price to decrease to a level where quantity supplied and quantity demanded are equal. Looking at the table, the price at which quantity supplied and quantity demanded are equal is $1.50, so the economist would expect the price to decrease to $1.50.

Table 43 -The Table Given Below Shows the Quantity Supplied and the |