​Exhibit 3-12 Supply and Demand Data
​ -?In Exhibit 3-12, Which of the Following Occurs at a c

question 254

Multiple Choice

​Exhibit 3-12 Supply and demand data
​ $$\begin{array} { | c | c | c | } \hline \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Supplied }\end{array} \\\hline \$ 1.00 & 250 & 150 \\1.50 & 200 & 200 \\2.00 & 150 & 250 \\2.50 & 100 & 300 \\\hline\end{array}$$
-?In Exhibit 3-12, which of the following occurs at a price of $1.00?

• A) ? A shortage puts a downward pressure on price.
• B) ?Quantity demanded exceeds quantity supplied, putting upward pressure on price.
• C) ?Quantity supplied exceeds quantity demanded, putting upward pressure on price.
• D) ?The surplus would be so small that there would be only slight upward pressure on price.

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Definitions:

Market Conditions

The various economic and social factors that influence the demand and supply of products and services, including market trends, consumer preferences, and economic indicators.

Plant Capacities

The maximum output or production ability of a manufacturing facility or plant within a given time period.

Cost Leadership

A competitive advantage strategy by minimizing operational costs to offer products or services at the lowest price in the market.

Manufacturing Facilities

Locations where products are produced or assembled.