Figure 4.3.1.
-Look at Figure 4.3.1. If the price is set at $1.30 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 $1.30 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

If the price is set at $1.30 per espresso shot and there is a surplus, it means the quantity supplied exceeds the quantity demanded, leading to downward pressure on the price, causing it to fall.

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