Figure 3-6 -Refer to Figure 3-6.The Figure Above Represents the Market for Represents

question 141

Multiple Choice

Figure 3-6

-Refer to Figure 3-6.The figure above represents the market for canvas tote bags.Compare the conditions in the market when the price is $50 and when the price is $35.Which of the following describes how the market differs at these prices?

• A)At each price there is a surplus; the surplus is greater at $35 than at $50.
• B)The difference between quantity supplied and quantity demanded is greater at $50 than at $35.
• C)At each price there is a surplus; firms will lower the equilibrium price in order to eliminate the surplus.
• D)At each price the supply of tote bags exceeds that demand for tote bags.

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