Question

If the price were $2, a A) surplus of 50 units would exist and price would tend to rise. B) surplus of 25 units would exist and price would tend to fall. C) shortage of 25 units would exist and price would tend to fall. D) shortage of 50 units would exist and price would tend to rise.

Answer 1

*Table is attached with the answer*

Answer:

The correct answer is D.

Explanation:

From the table in fifth row, it can be seen that when the price is $2, the quantity demanded is 50 and the quantity supplied is 0. So, there is shortage of 50 units would exists because quantity demanded is 50 units more than quantity supplied. As the shortage exists, So, the price would tend to rise.

Answer 2

Answer:

it is D

Explanation: