Narrbegin Exhibit 3.5 Demand and supply data for radios
$$\begin{array} { | c | c | c | }
\hline \text { Price (\$) } & \begin{array} { c }
\text { Quantity demanded } \
\text { of radios }
\end{array} & \begin{array} { c }
\text { Quantity supplied } \
\text { of radios }
\end{array} \
\hline 75 & 400 & 800 \
\hline 70 & 450 & 750 \
\hline 65 & 500 & 700 \
\hline 60 & 550 & 650 \
\hline 55 & 600 & 600 \
\hline 50 & 650 & 550 \
\hline 45& 700 & 500 \
\hline 40 & 750 & 450 \
\hline
\end{array}$$
-In Exhibit 3.5, at any market price of radios below $55, an _____ would result, causing the price to _____.

Question

Narrbegin Exhibit 3.5 Demand and supply data for radios
 $$\begin{array} { | c | c | c | } 
\hline \text { Price (\$) } & \begin{array} { c } 
\text { Quantity demanded } \
\text { of radios }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { of radios }
\end{array} \
\hline 75 & 400 & 800 \
\hline 70 & 450 & 750 \
\hline 65 & 500 & 700 \
\hline 60 & 550 & 650 \
\hline 55 & 600 & 600 \
\hline 50 & 650 & 550 \
\hline 45& 700 & 500 \
\hline 40 & 750 & 450 \
\hline
\end{array}$$ 
-In Exhibit 3.5, at any market price of radios below $55, an _____ would result, causing the price to _____.

Quizplus · Accepted Answer

At any market price below $55, the quantity demanded is higher than the quantity supplied, which results in excess demand. This excess demand puts upward pressure on prices, causing the price to rise in order to reach equilibrium. Therefore, option A is the best choice.

Narrbegin Exhibit 3 -In Exhibit 3