Exhibit 3-8 Demand and supply data for radios

-In Exhibit 3-8,at any market price of radios below $50,a(n)____ would result,causing price to ____.

Question

Exhibit 3-8 Demand and supply data for radios
 
-In Exhibit 3-8,at any market price of radios below $50,a(n)____ would result,causing price to ____.

Quizplus · Accepted Answer

At any market price below $50, as per the demand and supply data given in Exhibit 3-8, there would be excess demand for radios, i.e., quantity demanded would be greater than the quantity supplied. This would lead to a shortage of radios, and the scarcity would result in an increase in the market price to reach an equilibrium. Hence, the correct answer is A) excess demand, causing price to rise.

Exhibit 3-8 Demand and Supply Data for Radios