This Question: 1 pt 44065 (42 complete) This Test: 65 pts possib The table shows

Question

This Question: 1 pt 44065 (42 complete) This Test: 65 pts possib The table shows the demand and supply schedules for milk. If the price is $2.15 a carton, the quantity suppliedthe quantity demanded Quantity Quantity demanded supplied Price _ofrnik oxists. O A is greater thanç a surplus O B. ia greater than; a shortage OC. oquals; nether a shortage nor a surplus O D. is less than; a surplus 01 inless tan; a shortage Asthe market moves to equ!brim, 1.40 1.65 1.90 2.15 2.40 cartone per dayl 400 350 300 250 200 300 340 O A the price of a carton falls, the quantity demanded decreases, and the O B. the price of a carton fals, the quantity demanded increases, and the O C. the price of a carton rises, and the quantily demand and quantity supplied OD· the pneofacarton rises, the arety demanded decease, and the OE. the price of a carton tals, and the quantity demand and quantity suppied quantty supplied inoreases quantihy supplied decreases quantity supplied increaser Click to select your answer 01/08/18 ASSESS Chapter 12 Quiz 100mn 0 of 1 MacBook Air

Explanation / Answer

If the price is $2.15 a carton, the quantity supplied ......... the quantity demanded and .................of milk exists

Correct Answer:-

if the price is $2.15 a carton, the quantity supplied =340 units     

if the price is $2.15 a carton, the quantity demanded = 250 units

So from above it is clear that quantity supplied is greater than quantity demanded, this is the situation which is termed as surplus i.e. excess supply

So the correct option is:-

A:- is greater than ; surplus

As the market moves to equilibrium:-

Correct option:- B:- The price of carton falls, the quantity demanded increases and the quantity supplied decreases.

Reason:- The equilibrium point is where demand is equal to supply and this point is obtained at a price of $1.9. Thus in order to achieve the equilibrium point, the price will decreases. At this point, the demand increases from 250 units to 300 units when the price was $ 2.15, thus the demand is increasing. On the other hand, the supply at the equilibrium price of $1.9 is 300 units which are lesser than the supply of 340 units at a price of $2.15. therefore, at the equilibrium price, the quantity supply decreases.

I REQUEST YOU TO KINDLY RATE THE ANSWER AS THUMBS UP. THANKS A LOT .

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.