Exhibit 4-1

-If the price of the good described in Exhibit 4-1 is $1.50, then

Question

Exhibit 4-1
  
-If the price of the good described in Exhibit 4-1 is $1.50, then

Quizplus · Accepted Answer

If the price of the good is $1.50, we need to compare it with the equilibrium price. Since the exhibit does not provide any information about the equilibrium price, we cannot answer the question directly. However, we can use the concepts of supply and demand to reason about the market. 
If there is a shortage, it means that the quantity demanded exceeds the quantity supplied, which causes upward pressure on prices. Therefore, the price would not be $1.50 in this case. 
If there is a surplus, it means that the quantity supplied exceeds the quantity demanded, which causes downward pressure on prices. Therefore, the price would not be $1.50 in this case. 
If the market is in equilibrium, it means that the quantity demanded equals the quantity supplied, and there is no pressure on prices to change. Therefore, $1.50 could be the equilibrium price, and the market is in balance. 
The quantity supplied and demanded cannot be determined from the information provided, so choices D and E cannot be selected.

Exhibit 4-1 -If the Price of the Good Described in Exhibit 4-1