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Price Quantity Demanded Quantity Supplied (Dollars per unit) (Units) (Units) 5 30 80 40 65 3 50 50 60 35 1 70 20 Refer to Table 4-6. If the price were $4, a O shortage of 10 units would exist, and price would tend to rise. O surplus of 25 units would exist, and price would tend to fall. shortage of 25 units would exist, and price would tend to rise. surplus of 10 units would exist, and price would tend to fall. 4+

Price Quantity Demanded Quantity Supplied (Dollars per unit) (Units) (Units) 5 30 80 40 65 3 50 50 60 35 1 70 20 Refer to Table 4-6. If the price were $4, a O shortage of 10 units would exist, and price would tend to rise. O surplus of 25 units would exist, and price would tend to fall. shortage of 25 units would exist, and price would tend to rise. surplus of 10 units would exist, and price would tend to fall. 4+

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Table 4-6** | Price (Dollars per unit) | Quantity Demanded (Units) | Quantity Supplied (Units) | |--------------------------|---------------------------|---------------------------| | 5 | 30 | 80 | | 4 | 40 | 65 | | 3 | 50 | 50 | | 2 | 60 | 35 | | 1 | 70 | 20 | **Analysis Question:** Refer to Table 4-6. If the price were $4, a: - ○ shortage of 10 units would exist, and price would tend to rise. - ○ surplus of 25 units would exist, and price would tend to fall. - ○ shortage of 25 units would exist, and price would tend to rise. - ○ surplus of 10 units would exist, and price would tend to fall. **Table Explanation:** The table illustrates the relationship between price, quantity demanded, and quantity supplied. This is a simple supply and demand comparison at different price points. - At a price of $5, quantity demanded is 30 units, and quantity supplied is 80 units. - At a price of $4, quantity demanded is 40 units, and quantity supplied is 65 units. - At a price of $3, both quantity demanded and supplied are equal at 50 units, indicating equilibrium. - At a price of $2, quantity demanded is 60 units, while quantity supplied is 35 units, suggesting a potential shortage. - At a price of $1, quantity demanded is 70 units, and quantity supplied is 20 units, indicating a significant shortage. The analysis question asks to determine the market condition (shortage or surplus) at a price of $4 and how the price would likely adjust.
Transcribed Image Text:**Table 4-6** | Price (Dollars per unit) | Quantity Demanded (Units) | Quantity Supplied (Units) | |--------------------------|---------------------------|---------------------------| | 5 | 30 | 80 | | 4 | 40 | 65 | | 3 | 50 | 50 | | 2 | 60 | 35 | | 1 | 70 | 20 | **Analysis Question:** Refer to Table 4-6. If the price were $4, a: - ○ shortage of 10 units would exist, and price would tend to rise. - ○ surplus of 25 units would exist, and price would tend to fall. - ○ shortage of 25 units would exist, and price would tend to rise. - ○ surplus of 10 units would exist, and price would tend to fall. **Table Explanation:** The table illustrates the relationship between price, quantity demanded, and quantity supplied. This is a simple supply and demand comparison at different price points. - At a price of $5, quantity demanded is 30 units, and quantity supplied is 80 units. - At a price of $4, quantity demanded is 40 units, and quantity supplied is 65 units. - At a price of $3, both quantity demanded and supplied are equal at 50 units, indicating equilibrium. - At a price of $2, quantity demanded is 60 units, while quantity supplied is 35 units, suggesting a potential shortage. - At a price of $1, quantity demanded is 70 units, and quantity supplied is 20 units, indicating a significant shortage. The analysis question asks to determine the market condition (shortage or surplus) at a price of $4 and how the price would likely adjust.
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