Table 3-C -Refer to Table 3-C

question 227

Multiple Choice

Table 3-C
$$\begin{array} { | c | c | c | } \hline \text { PRICE music downloads } & \begin{array} { c } \text { QUANTITY DEMANDED } \\\text { music downloads }\end{array} & \begin{array} { c } \text { QUANTITY SUPPLIED } \\\text { music downloads }\end{array} \\\hline \text { \$2.00 } & 1,000,000 \text { urits } & 5,500,000 \text { urits } \\\hline 1.80 & 2,000,000 \text { units } & 5,00,000 \text { units } \\\hline 1.60 & 3,000,000 \text { units } & 4,50,000 \text { units } \\\hline 1.40 & 4,000,000 \text { units } & 4,000,000 \text { units } \\\hline 1.20 & 5,000,000 \text { units } & 3,500,000 \text { units } \\\hline 1.00 & 6,000,000 \text { units } & 3,000,000 \text { units } \\\hline 0.80 & 7,000,000 \text { units } & 2,500,000 \text { units } \\\hline 0.65 & 8,000,000 \text { units } & 2,000,000 \text { units } \\\hline 0.40 & 9,000,000 \text { units } & 1,500,000 \text { units } \\\hline 0.20 & 10,000,000 \text { units } & 1,000,000 \text { units } \\\hline\end{array}$$
-Refer to Table 3-C.At $0.40 there is a ____ of ____ downloads.

• A)surplus; 10,500,000
• B)surplus; 7,500,000
• C)shortage; 7,500,000
• D)shortage; 10,500,000
• E)None of the above are correct.

---

Definitions:

Double Marginalization

A pricing issue that occurs when two or more entities in the same supply chain add their markup, leading to higher prices for the end consumer.

Retail Price

The price at which a product is sold to the public, usually after including costs of production, distribution, and a markup for profit.

Ensure Freshness

Measures or practices used to maintain the quality and safety of perishable products.

Refrigerator

An electrical appliance used for keeping food and drinks cold, playing a crucial role in modern food preservation and safety.