Suppose That the Following Table Shows the Supply and Demand

question 139

Multiple Choice

Suppose that the following table shows the supply and demand schedules for Arabian light crude oil on the free market: $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Price } \\\text { (Dalars/barrel) }\end{array} & \begin{array} { c } \text { Quantity demanded (mil. } \\\text { barrels per day) }\end{array} & \begin{array} { c } \text { Quantity Supplied (mil. } \\\text { barrels per day) }\end{array} \\\hline 26 & 14 & 10 \\\hline 27 & 13 & 11 \\\hline 28 & 12 & 12 \\\hline 29 & 11 & 13 \\\hline 30 & 10 & 14 \\\hline\end{array}$$ Given the information in the table, the only price at which there is neither shortage nor surplus is:

• A) $26 per barrel.
• B) $27 per barrel.
• C) $28 per barrel.
• D) $29 per barrel.

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Definitions:

Necessity

A concept in law and ethics that allows for actions under exceptional circumstances, typically for immediate need or survival.

Restitution

The act of compensating for loss, damage, or injury caused, typically in legal contexts.

Indivisible

Pertaining to something that cannot be separated or divided into parts without losing its essential features or functionality.

Complete Performance

The full and exact fulfillment of all terms and obligations as specified in a contract.