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 above shows the quantity supplied and the quantity demanded of a good at different prices.If the price of the good described in the table above 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 above shows the quantity supplied and the quantity demanded of a good at different prices.If the price of the good described in the table above is $1.60,then an economist would expect the _____

Quizplus · Accepted Answer

At a price of \$1.60, the quantity demanded is 60 and the quantity supplied is 90, indicating an excess supply in the market. This will put pressure on the suppliers to lower their prices to sell off the excess supply. Therefore, an economist would expect the price to decrease from \$1.60 to a level closer to where quantity demanded and quantity supplied are equal, which is at a price range of \$1.40 or \$1.50. Option B is the closest choice to this reasoning.

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