The Following Table Shows the Market Demand Schedule and Supply

question 38

Multiple Choice

The following table shows the market demand schedule and supply schedule for notebooks.

-Refer to the table above.Which of the following statements is true?

• A) There is a surplus of 4 notebooks in the market when the price of one notebook is $5.
• B) There is a surplus of 10 notebooks in the market when the price of one notebook is $8.
• C) There is a shortage of 4 notebooks in the market when the price of one notebook is $6.
• D) There is a shortage of 12 notebooks in the market when the price of one notebook is $4.

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Definitions:

Parity Concept

The idea that year after year the sale of a specific output of a farm product should enable a farmer to purchase a constant amount of nonagricultural goods and services.

Parity Concept

A principle in economics that suggests prices, incomes, or interest rates should equalize across different markets or countries, adjusted for exchange rates.

Farm Commodities

Agricultural products such as grains, milk, cattle, fruits, and vegetables that are usually sold to processors, who use the products as inputs in creating food products.

Prices-Paid Index

An economic indicator that tracks changes in the prices paid by manufacturers for inputs, raw materials, and services.