The Table Below Displays Hypothetical Demand and Supply Schedules for the Market

question 8

Multiple Choice

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. $$\begin{array} { | c | c | c | c | c | c | } \hline & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { (millions) }\end{array} && & \begin{array} { c } \text { Quantity } \\\text { Supplied } \\\text { (millions) }\end{array} & \\\hline \text { Price (\$) } & \text { Year 1 } & \text { Year 2 } & & \text { Year 1 } & \text { Year 2 } \\\hline & & & & & \\\hline 30 & 80 & 95 & & 140 & 125 \\\hline 26 & 90 & 105 & & 135 & 120 \\\hline 22 & 100 & 115 & & 130 & 115 \\\hline 18 & 110 & 125 & & 125 & 110 \\\hline 14 & 120 & 135 & & 120 & 105 \\\hline 10 & 130 & 145 & & 115 & 100 \\\hline\end{array}$$ TABLE 3- 3
-Refer to Table 3- 3.Suppose the price of overnight parcel delivery in Year 1 is $22.Which of the following statements is correct? In Year 1

• A)there is an excess demand of 30 million deliveries.
• B)115 million parcels will be delivered.
• C)there is an excess supply of 15 million deliveries.
• D)there is an excess supply of 30 million deliveries.
• E)there is an excess demand of 15 million deliveries.

---

Definitions:

Constraint

A limitation or condition that must be met in problem-solving or optimization scenarios.

Cannot Exceed

A term that limits or restricts a particular value, quantity, or action from going beyond a specified point.

Inequality

A mathematical statement indicating that two expressions are not equal, usually shown with signs like <, >, ≤, or ≥.

Linear Optimization

The process of finding the best solution or maximizing/minimizing a linear objective function subject to linear equality or inequality constraints.