Consider the Following Demand and Supply Schedules for Some Agricultural

question 27

Multiple Choice

Consider the following demand and supply schedules for some agricultural commodity. $$\begin{array} { | c | l | c | } \hline \text { Price } & \text { Quantity Supplied } & \text { Quantity Demanded } \\\hline \$ 10 & 300 & 1100 \\\hline \$ 30 & 500 & 900 \\\hline \$ 50 & 700 & 700 \\\hline \$ 70 & 900 & 500 \\\hline \$ 90 & 1100 & 300 \\\hline \$ 110 & 1300 & 100 \\\hline\end{array}$$ TABLE 5- 2
-In free and competitive markets,shortages are eliminated by

• A)rationing.
• B)price increases.
• C)black markets.
• D)price decreases.
• E)government price controls.