QUESTION 1 The table given below shows the quantity supplied and the quantity de

Question

QUESTION 1 The table given below shows the quantity supplied and the quantity demanded of a good at different prices. If the price of the good described in the table given below is $1.50, then: Table 4.1 100 30 1.40 1.50 1.60 O a. there is a shortage in the market. b, the market is in equilibrium. c. the supply of the good increases by 30 units Od the demand for the good increases by 30 units 0 there is a surplus in the market. Click Save and Submit to save and submit. Cick Save All Answers to save all answers. Save All Answers

Explanation / Answer

Answer. 1) b, because at that price both demand and supply is equal. Where demand and supply are equal, it is called market is in equilibrium.

Answer. 2) option C) because increase in price causes decrease in demand. Therefore, demand curve shifted to D1 from D2, demand decrease.

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