Table 4-1
$$\begin{array} { l | l | l }
\hline \text { PRICE } & \text { QUANTITY DEMANDED } & \text { QUANTITY SUPPLIED } \
\hline \$ 10 & 10 & 60 \
\hline \$ 8 & 20 & 45 \
\hline \$ 6 & 30 & 30 \
\hline \$ 4 & 40 & 15 \
\hline \$ 2 & 50 & 0
\end{array}$$
-Refer to the Table 4-1.If the price were $2,what would happen?

Question

Table 4-1
 $$\begin{array} { l | l | l } 
\hline \text { PRICE } & \text { QUANTITY DEMANDED } & \text { QUANTITY SUPPLIED } \
\hline \$ 10 & 10 & 60 \
\hline \$ 8 & 20 & 45 \
\hline \$ 6 & 30 & 30 \
\hline \$ 4 & 40 & 15 \
\hline \$ 2 & 50 & 0
\end{array}$$
-Refer to the Table 4-1.If the price were $2,what would happen?

Quizplus · Accepted Answer

At the price of $2, the quantity demanded is 50 while the quantity supplied is zero. Therefore, there would be a shortage of 50 units (demand exceeds supply), which would lead to an increase in price as buyers compete to secure the limited supply. Thus, the price would tend to rise.

Table 4-1 -Refer to the Table 4-1