Use Exhibit 1. If the actual price in the market was $16, then a A. shortage of 700 units would exist and price would tend to rise. B. shortage of 450 units would exist and price would tend to rise. C. shortage of 250 units would exist and price would tend to rise. D. surplus of 700 units would exist and price would tend to fall. E. surplus of 250 units would exist and price would tend to fall.
Use Exhibit 1. If the actual price in the market was $16, then a A. shortage of 700 units would exist and price would tend to rise. B. shortage of 450 units would exist and price would tend to rise. C. shortage of 250 units would exist and price would tend to rise. D. surplus of 700 units would exist and price would tend to fall. E. surplus of 250 units would exist and price would tend to fall.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Use Exhibit 1. If the actual
A. shortage of 700 units would exist and price would tend to rise.
B. shortage of 450 units would exist and price would tend to rise.
C. shortage of 250 units would exist and price would tend to rise.
D. surplus of 700 units would exist and price would tend to fall.
E. surplus of 250 units would exist and price would tend to fall.
![Exhibit 1
Quantity
Demanded
Quantity
Supplied
Price
$20
500
750
$18
600
600
$16
700
450](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3af02bf0-14e8-4847-b079-6f848b724e08%2F3955e6e0-1f9d-4641-a1d9-8e60d67e9fe3%2Ffaeysia_processed.png&w=3840&q=75)
Transcribed Image Text:Exhibit 1
Quantity
Demanded
Quantity
Supplied
Price
$20
500
750
$18
600
600
$16
700
450
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