The Table Given Below Shows the Quantity Supplied and the Quantity

question 119

Multiple Choice

The table given below shows the quantity supplied and the quantity demanded for a good at different prices.If the price of the good described in the table given below is $1.60,then there is a:
$$\begin{array}{l}\text { Table } 4.1\\\begin{array} { | r | r | r | } \hline { \text { Price(\$) } } & { \begin{array} { l } \text { Quantity } \\\text { demanded }\end{array} } & { \begin{array} { l } \text { Quantity } \\\text { supplied }\end{array} } \\\hline 1 & 100 & 10 \\\hline 1.2 & 90 & 30 \\\hline 1.4 & 80 & 50 \\\hline 1.5 & 70 & 70 \\\hline 1.6 & 60 & 90 \\\hline\end{array}\end{array}$$

• A)shortage of 30 units.
• B)surplus of 30 units.
• C)shortage of 20 units.
• D)surplus of 20 units.
• E)surplus of 10 units.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets.

Total Asset Turnover

A financial ratio that measures how efficiently a company uses its assets to generate sales by dividing net sales by total assets.

Total Debt Ratio

A financial ratio that compares a company's total liabilities to its total assets, indicating the proportion of a company's assets that are financed through debt.