The Table Given Below Shows the Quantity Supplied and the Quantity

question 2

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 below is $1.60,then an economist would expect the:
$$\begin{array}{l}\text { Table } 4.1\\\begin{array} { | r | r | r | } \hline { \text { Price(\$) } } & { \begin{array} { l } \text { Quantity } \\\text { demanded }\end{array} } & { \begin{array} { l } \text { Quantity } \\\text { supplied }\end{array} } \\\hline 1 & 100 & 10 \\\hline 1.2 & 90 & 30 \\\hline 1.4 & 80 & 50 \\\hline 1.5 & 70 & 70 \\\hline 1.6 & 60 & 90 \\\hline\end{array}\end{array}$$

• A)price to decrease to $1.40.
• B)price to decrease to $1.50.
• C)quantity supplied to decrease to 50 units.
• D)quantity demanded to increase to 80 units.
• E)quantity demanded to decrease to 50 units.

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Definitions:

Money Demand Curve

A graphical representation illustrating the relationship between the quantity of money demanded and the interest rate, showing how they vary inversely.

Inflation Rate

The annual rate at which the cost of goods and services rises within an economy, reflecting a growth in price levels over time.

Price Level

An indicator of the mean cost of goods and services within an economy at a particular moment.

Money-Supply Curve

A graphical representation showing the relationship between the quantity of money supplied and the interest rate.