Complete Table 3.1.Then answer the indicated question. Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if government held the price at $3,
Quantity Demanded by
$\begin{array}{rccc}
\text { Price } & \text { Alejandro } & \text { Ben } & \text { Carl } & \text { Market} \
\hline \$8.00& 8 & 4 & 2 &\_\_\_\
6.00 & 12 & 4 & 4 &\_\_\_\
4.00 & 20 & 4 & 6 &\_\_\_\
2.00 & 22 & 4 & 6&\_\_\_\
\end{array}$ Quantity Supplied by
$\begin{array}{lccc}
\text { Price } & \text { Avery } & \text { Brandon } & \text { Cassandra } \
\hline \$ 8.00 & 60 & 4 & 6 &\_\_\_\
\$ 6.00 & 42 & 4 & 4&\_\_\_ \
\$ 4.00 & 24 & 4 & 2 &\_\_\_\
\$ 2.00 & 6 & 4 & 0&\_\_\_\
\end{array}$
A) The government would be setting an effective price floor.
B) The shortage would be the same as the quantity demanded.
C) There would be a shortage.
D) The market would be in equilibrium.

Question

Complete Table 3.1.Then answer the indicated question. Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if government held the price at $3,
Quantity Demanded by
$\begin{array}{rccc}
\text { Price } & \text { Alejandro } & \text { Ben } & \text { Carl } & \text { Market} \
\hline \$8.00& 8 & 4 & 2 &\_\_\_\
6.00 & 12 & 4 & 4 &\_\_\_\
4.00 & 20 & 4 & 6 &\_\_\_\
2.00 & 22 & 4 & 6&\_\_\_\
\end{array}$ Quantity Supplied by 
$\begin{array}{lccc}
\text { Price } & \text { Avery } & \text { Brandon } & \text { Cassandra } \
\hline \$ 8.00 & 60 & 4 & 6 &\_\_\_\
\$ 6.00 & 42 & 4 & 4&\_\_\_ \
\$ 4.00 & 24 & 4 & 2 &\_\_\_\
\$ 2.00 & 6 & 4 & 0&\_\_\_\
\end{array}$
A) The government would be setting an effective price floor.
B) The shortage would be the same as the quantity demanded.
C) There would be a shortage.
D) The market would be in equilibrium.

Quizplus · Accepted Answer

At a price of $3, which is not explicitly shown in the table but can be inferred to be between the prices of $2.00 and $4.00, the quantity demanded would be higher than the quantity supplied. This is because, as price decreases, the quantity demanded typically increases, while the quantity supplied decreases. Since the government is holding the price at $3, it is preventing the market from reaching equilibrium, where quantity demanded equals quantity supplied, thus creating a shortage.

Complete Table 3 Quantity Supplied By A) the Government Would Be Setting an Effective Price Floor