Q1. Table 2: Quantity demanded and supply for a given marketPriceQuantityDemanded1020304050$10$8$6$4$2QuantitySupplied6045Refer to table 2. If the price were $8, a30150surplus of 25 units would exist, and price would tend to fall.surplus of 45 units would exist, and price would tend to fall.shortage of 20 units would exist, and price would tend to rise.O shortage of 25 units would exist, and price would tend to rise.

The given data shows the inverse relationship between the price and the quantity demanded. As it can…

Answered: Price $10 $8 $6 $4 $2 nded and supply…

Business

Economics

Price $10 $8 $6 $4 $2 nded and supply for a given market Quantity Supplied 60 45 30 15 Quantity Demanded 10 20 30 40 50

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6PA

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

Q1.

Table 2: Quantity demanded and supply for a given market
Price
Quantity
Demanded
10
20
30
40
50
$10
$8
$6
$4
$2
Quantity
Supplied
60
45
Refer to table 2. If the price were $8, a
30
15
0
surplus of 25 units would exist, and price would tend to fall.
surplus of 45 units would exist, and price would tend to fall.
shortage of 20 units would exist, and price would tend to rise.
O shortage of 25 units would exist, and price would tend to rise.

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