Asked by kirston seldon on Jul 07, 2024
Verified
The table given below shows the quantity supplied and the quantity demanded for a good at different prices.If the price of the good described in the table below is $1.60,then an economist would expect the:
Table 4.1 Price($) Quantity demanded Quantity supplied 1100101.290301.480501.570701.66090\begin{array}{l}\text { Table } 4.1\\\begin{array} { | r | r | r | } \hline { \text { Price(\$) } } & { \begin{array} { l } \text { Quantity } \\\text { demanded }\end{array} } & { \begin{array} { l } \text { Quantity } \\\text { supplied }\end{array} } \\\hline 1 & 100 & 10 \\\hline 1.2 & 90 & 30 \\\hline 1.4 & 80 & 50 \\\hline 1.5 & 70 & 70 \\\hline 1.6 & 60 & 90 \\\hline\end{array}\end{array} Table 4.1 Price($) 11.21.41.51.6 Quantity demanded 10090807060 Quantity supplied 1030507090
A) price to decrease to $1.40.
B) price to decrease to $1.50.
C) quantity supplied to decrease to 50 units.
D) quantity demanded to increase to 80 units.
E) quantity demanded to decrease to 50 units.
Economist Expectation
The forecasts or predictions about economic factors like inflation, growth, or interest rates made by economists.
Quantity Demanded
The specific amount of a good or service that consumers are willing and able to purchase at a particular price.
- Comprehend the idea of market balance and the factors that propel it.
Verified Answer
PA
Pedro ArdiacaJul 11, 2024
Final Answer :
B
Explanation :
At a price of $1.60, the quantity supplied (90 units) exceeds the quantity demanded (60 units), leading to a surplus. Economists would expect the price to decrease to eliminate this surplus, and the table shows that at $1.50, the quantity supplied equals the quantity demanded (70 units), restoring market equilibrium.
Learning Objectives
- Comprehend the idea of market balance and the factors that propel it.