Figure 3-6
-Which of the following is evidence of a shortage of walnuts?
A) Firms lower the price of walnuts.
B) The price of cashews is lowered in order to make up for the walnut shortage.
C) The equilibrium price of walnuts falls due to a decrease in demand.
D) The quantity demanded of walnuts is greater than the quantity supplied.

Question

Figure 3-6 
-Which of the following is evidence of a shortage of walnuts?
A) Firms lower the price of walnuts. 
B) The price of cashews is lowered in order to make up for the walnut shortage. 
C) The equilibrium price of walnuts falls due to a decrease in demand. 
D) The quantity demanded of walnuts is greater than the quantity supplied.

Quizplus · Accepted Answer

The only answer choice that directly indicates a shortage of walnuts is option D, which states that the quantity demanded of walnuts is greater than the quantity supplied. This means that there are not enough walnuts available to meet consumer demand, resulting in a shortage. Option A suggests a decrease in price, but this could also occur due to an increase in supply or decrease in demand. Option B does not provide any information about the supply or demand of walnuts, and option C suggests a decrease in demand rather than a shortage of supply. Therefore, the best choice is D.

Figure 3-6 -Which of the Following Is Evidence of a Shortage of a Shortage