use the table to answer the question.\nprice quantity demanded (units) quantity supplied (units)\n$3 250…

use the table to answer the question.\nprice quantity demanded (units) quantity supplied (units)\n$3 250 40\n$5 220 80\n$7 190 120\n$9 160 160\n$11 130 200\n$13 100 240\n$15 70 280\nat what price does this market experience a shortage of 140 units?\n$3\n$5\n$13\n$15

use the table to answer the question.\nprice quantity demanded (units) quantity supplied (units)\n$3 250 40\n$5 220 80\n$7 190 120\n$9 160 160\n$11 130 200\n$13 100 240\n$15 70 280\nat what price does this market experience a shortage of 140 units?\n$3\n$5\n$13\n$15

Answer

Answer:

A. $3

Explanation:

Step1: Recall shortage formula

Shortage = Quantity Demanded - Quantity Supplied

Step2: Check price of $3

At price = $3, Quantity Demanded = 250, Quantity Supplied = 40. Shortage = 250 - 40=210

Step3: Check price of $5

At price = $5, Quantity Demanded = 220, Quantity Supplied = 80. Shortage = 220 - 80 = 140

Step4: Check price of $13

At price = $13, Quantity Demanded = 100, Quantity Supplied = 240. There is a surplus (240 - 100 = 140) not a shortage

Step5: Check price of $15

At price = $15, Quantity Demanded = 70, Quantity Supplied = 280. There is a surplus (280 - 70 = 210) not a shortage

So the price at which there is a shortage of 140 units is $5.