The demand and supply schedules for lawn mowing are given below:
\begin{tabular}{lll}
Price & Quantity demanded & Quantity Supplied \
\hline$\$ 20$ & 0 & 12 \
$\$ 18$ & 2 & 10 \
$\$ 16$ & 2 & 8 \
$\$ 14$ & 3 & 6 \
$\$ 12$ & 4 & 4 \
$\$ 10$ & 5 & 2 \
$\$ 8$ & 6 & 0
\end{tabular}

Which of the following best describes why a price of $\$ 16$ would not be considered an equilibrium price?

Choose 1 answer:
(A) Quantity supplied is less than quantity demanded, causing a surplus, which will cause the price to fall
(B) Quantity supplied is greater than quantity demanded, causing a shortage, which will cause the price to rise.
(C) Quantity supplied is less than quantity demanded, causing a shortage, which will cause the price to rise.
(D) Quantity supplied is greater than quantity demanded, causing a surplus, which will cause the price to fall.
(E) Quantity supplied is greater than quantity demanded, causing a surplus, which will cause the price to rise.
Report a problem

Question

The demand and supply schedules for lawn mowing are given below:
\begin{tabular}{lll} 
Price & Quantity demanded & Quantity Supplied \
\hline$\$ 20$ & 0 & 12 \
$\$ 18$ & 2 & 10 \
$\$ 16$ & 2 & 8 \
$\$ 14$ & 3 & 6 \
$\$ 12$ & 4 & 4 \
$\$ 10$ & 5 & 2 \
$\$ 8$ & 6 & 0
\end{tabular}

Which of the following best describes why a price of $\$ 16$ would not be considered an equilibrium price?

Choose 1 answer:
(A) Quantity supplied is less than quantity demanded, causing a surplus, which will cause the price to fall
(B) Quantity supplied is greater than quantity demanded, causing a shortage, which will cause the price to rise.
(C) Quantity supplied is less than quantity demanded, causing a shortage, which will cause the price to rise.
(D) Quantity supplied is greater than quantity demanded, causing a surplus, which will cause the price to fall.
(E) Quantity supplied is greater than quantity demanded, causing a surplus, which will cause the price to rise.
Report a problem

Accepted Answer

***D*** ∻Key Concept∻ ⚹Equilibrium Price⚹ ∻Explanation∻ ⚹The equilibrium price is where the quantity demanded equals the quantity supplied. At a price of $16, the quantity supplied (8) is greater than the quantity demanded (2), leading to a surplus. This surplus puts downward pressure on the price, moving it towards the equilibrium.⚹◊What would be the market equilibrium price in this scenario based on the demand and supply schedules provided?⍭ Generate me a similar question◊$

Sia