Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
24
![Table 2: Quantity demanded and supply for a glven market
Price
Quantity
Quantity
Supplied
Demanded
$10
10
60
$8
20
45
$6
30
30
$4
40
15
$2
50
Refer to table 2. If the price were $8, a
surplus of 25 units would exist, and price would tend to fall.
surplus of 45 units would exist, and price would tend to fall.
shortage of 20 units would exist, and price would tend to rise.
O shortage of 25 units would exist, and price would tend to rise.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54827682-bc2e-453e-8315-80bfd8615b3c%2F56e9c0be-8769-47c6-9dbe-0eda5842ce47%2F70undsg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Table 2: Quantity demanded and supply for a glven market
Price
Quantity
Quantity
Supplied
Demanded
$10
10
60
$8
20
45
$6
30
30
$4
40
15
$2
50
Refer to table 2. If the price were $8, a
surplus of 25 units would exist, and price would tend to fall.
surplus of 45 units would exist, and price would tend to fall.
shortage of 20 units would exist, and price would tend to rise.
O shortage of 25 units would exist, and price would tend to rise.
Expert Solution
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Step 1
From the table:
Equilibrium price = $6
Equilibrium quantity = 30
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