he graph below depicts the market tor oranges at a local tarmers market. 7 Marke

Question

he graph below depicts the market tor oranges at a local tarmers market. 7 Market for Oranges Price (dollars) $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 points Print 20 40 60 80 100 120 140 160 180 200 Quantity (pounds) Instructions: Enter your answers as a whole number a. If a producer tries to sell oranges at a price of $0.40 per pound, what will be the quantity demanded and quantity supplied at this price? ad- ] pounds of oranges Gs-pounds of oranges b. Determine whether there is a surplus or a shortage at a price of $0.40 per pound, and determine the size of the surplus or shortage. At this orice. there will be a lrClick to select) ofDounds of oranaes. Mc

Explanation / Answer

7. Qd(Quantity demanded)=160 pounds of oranges.

Qs(Quantity supplied) = 70 pounds of oranges

Note: as $ 0.40 is a price below equilibrium price of $ 0.7. There is excess demand. To identify just draw lines till 0.4 on demand and supply line till x-axis, you will get an answer.

9. Correct option is : a shortage of 125 cars.

At price $20,000: Qd= 325 cars and Qs=225 cars hence the difference is125 cars less in supply than demand.

Here also we can note that as price $20000 is less than equilibrium price (where demand and supply are equal) of $25000; Qs is less than Qd.

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