Figure 4.3.1.
-Look at Figure 4.3.1. If the price is set at $0.80 per espresso shot, there is a(n) ________ leading to a price ________.
A) shortage; rise
B) shortage; fall
C) surplus; rise
D) surplus; fall
E) equilibrium; rise

Question

Figure 4.3.1. 
-Look at Figure 4.3.1. If the price is set at $0.80 per espresso shot, there is a(n) ________ leading to a price ________.
A) shortage; rise 
B) shortage; fall 
C) surplus; rise 
D) surplus; fall 
E) equilibrium; rise

Quizplus · Accepted Answer

At a price of $0.80 per espresso shot, the quantity demanded (Qd) is greater than the quantity supplied (Qs), leading to a shortage. This shortage will cause suppliers to raise the price to reach an equilibrium point where Qd = Qs. Therefore, the price will rise.

Figure 4.3.1. -Look at Figure 4.3.1. If the Price Is Set at Is