question archive Consider the following table
Consider the following table
Subject:MarketingPrice:2.88 Bought3
Consider the following table.
| Price | Quantity Demanded | Quantity Supplied |
|---|---|---|
| 10 | 211 | 110 |
| 20 | 200 | 146 |
| 30 | 191 | 191 |
| 40 | 140 | 215 |
| 50 | 90 | 300 |
For each price, find the amount of shortage or surplus in the market. Find an equilibrium price if there is one and explain why.
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The table is completed below. A shortage exists when the quantity supplied is less than the quantity demanded, while a surplus exists when the quantity supplied is more than the quantity demanded.
| Price | Quantity Demanded | Quantity Supplied | Surplus/Shortage |
|---|---|---|---|
| 10 | 211 | 110 | Shortage 111 units |
| 20 | 200 | 146 | Shortage 54 units |
| 30 | 191 | 191 | No surplus or shortage - Equilibrium point |
| 40 | 140 | 215 | Surplus of 75 units |
| 50 | 90 | 300 | Surplus of 210 units |
The equilibrium price is $30 since the quantity demanded and supplied are the same.
