Table 3-3

-In Table 3-3,at a price of $2 per unit,

Question

Table 3-3
 
-In Table 3-3,at a price of $2 per unit,

Quizplus · Accepted Answer

Based on the information given in the table, at a price of $2 per unit, the quantity supplied is 100 and the quantity demanded is 50. This means that there is an excess supply, or surplus, of 50 units. Therefore, there will be a shortage of 50 units, not a surplus, at this price. Consumers will not bid prices downward because they are willing to pay $2 per unit. The market is not in equilibrium because there is a shortage.

Table 3-3 -In Table 3-3,at a Price of $2 Per Unit