Table 2.11 depicts the market for mushrooms (in thousands of kilograms per month).

-Refer to Table 2.11 to answer this question.What will happen if the price of the product is $3?
A)There would be a surplus of 18,which would lead to a decrease in price.
B)There would be a shortage of 18,which would lead to an increase in price.
C)There would be a shortage of 18,which would lead to a decrease in price.
D)There would be a surplus of 18,which would lead to an increase in price.
E)There would be neither a surplus nor a shortage.

Question

Table 2.11 depicts the market for mushrooms (in thousands of kilograms per month).
 
-Refer to Table 2.11 to answer this question.What will happen if the price of the product is $3?
A)There would be a surplus of 18,which would lead to a decrease in price. 
B)There would be a shortage of 18,which would lead to an increase in price. 
C)There would be a shortage of 18,which would lead to a decrease in price. 
D)There would be a surplus of 18,which would lead to an increase in price. 
E)There would be neither a surplus nor a shortage.

Quizplus · Accepted Answer

At a price of $3, the quantity demanded is 42 and the quantity supplied is only 24, resulting in a shortage of 18. This shortage would lead to an increase in price as consumers compete to purchase the limited supply. Therefore, the best choice is B.

Table 211 Depicts the Market for Mushrooms (In Thousands of Kilograms