(Table) Using the Data for the Market for Lattes in the Table

question 208

Multiple Choice

(Table) Using the data for the market for lattes in the table, at a price of $2, there is a _____ and the price will _____. $$\begin{array} { l c c c c c c } \mathbf { P } & \mathbf { \$ 1 0 } & \mathbf { \$ 8 } & \mathbf { \$ 6 } & \mathbf { \$ 4 } & \mathbf { \$ 2 } & \mathbf { \$ 0 } \\\mathbf { Q } _ { d } & 3 & 7 & 10 & 14 & 20 & 30 \\\boldsymbol { Q } _ { s } & 20 & 15 & 10 & 7 & 3 & 0\end{array}$$

• A) shortage; rise
• B) shortage; fall
• C) surplus; rise
• D) surplus; fall

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Definitions:

Written Warranty

A legally binding promise made by a seller to a buyer that a product will meet certain quality and reliability standards.

Implied Warranties

Unwritten guarantees that ensure products or services meet certain standards of quality and reliability, even though not explicitly stated.

Disclaim

A legal term used when one renounces their right or claim to something, often to avoid liability.

Truth-in-Lending Act

A legislation at the federal level aimed at encouraging the knowledgeable use of consumer credit through mandated disclosures regarding its conditions and expenses.