The table provides data on the demand for and the supply of eggs in the United States. At a price of _____________ there would be a surplus.
Price (per dozen)
$0.50
$1.00
$1.50
$2.00
$2.50
Quantity Demanded
90
80
70
60
50
Quantity Supplied
30
50
70
90
100
Answer
Question 9 answers
$0.50
$1.00
$1.50
$2.00
None of the above.
To determine at what price there would be a surplus, we need to compare the quantity demanded with the quantity supplied for each price.
Looking at the table, we can see that at a price of $0.50, the quantity demanded is 90 and the quantity supplied is 30. Since the quantity demanded (90) is greater than the quantity supplied (30), there will be a shortage, not a surplus.
At a price of $1.00, the quantity demanded is 80 and the quantity supplied is 50. Again, the quantity demanded is greater than the quantity supplied, so there will be a shortage and not a surplus.
At a price of $1.50, the quantity demanded is 70 and the quantity supplied is also 70. In this case, the quantity demanded is equal to the quantity supplied, so there will be neither a shortage nor a surplus.
At a price of $2.00, the quantity demanded is 60 and the quantity supplied is 90. Here, the quantity supplied is greater than the quantity demanded, so there will be a surplus.
Lastly, at a price of $2.50, the quantity demanded is 50 and the quantity supplied is 100. Once again, the quantity supplied is greater than the quantity demanded, so there will be a surplus.
Therefore, the correct answer is: At a price of $2.00, there would be a surplus.