Figure 3-6
-Refer to Figure 3-6.The figure above represents the market for coffee grinders.Compare the conditions in the market when the price is $15 and when the price is $21.Which of the following describes how the market differs at these prices?
A)At each price there is a shortage; the shortage is greater at $15 than at $21.
B)The difference between quantity supplied and quantity demanded is greater at $21 than at $15.
C)At each price there is a shortage; firms will raise the equilibrium price in order to eliminate the shortage.
D)At each price the demand for coffee grinders exceeds the supply of coffee grinders.

Question

Figure 3-6 
-Refer to Figure 3-6.The figure above represents the market for coffee grinders.Compare the conditions in the market when the price is $15 and when the price is $21.Which of the following describes how the market differs at these prices?
A)At each price there is a shortage; the shortage is greater at $15 than at $21. 
B)The difference between quantity supplied and quantity demanded is greater at $21 than at $15. 
C)At each price there is a shortage; firms will raise the equilibrium price in order to eliminate the shortage. 
D)At each price the demand for coffee grinders exceeds the supply of coffee grinders.

Quizplus · Accepted Answer

At a lower price ($15), the quantity demanded exceeds the quantity supplied by a larger margin than at a higher price ($21), indicating a greater shortage at the lower price. This is a basic principle of supply and demand: as price decreases, demand typically increases (leading to a larger shortage if supply doesn't match), and as price increases, the quantity demanded usually decreases (reducing the shortage).

Figure 3-6 -Refer to Figure 3-6.The Figure Above Represents the Market for the Market