Question

Suppose the given supply and demand tables reflect the supply and demand for milk per week. At a price of $1, there is a:Price(per gal.) Quantity demanded (gallons per week) Quantity Supplied (gallons per week)$1 2000 1000$2 1500 1500$3 1000 2000$4 500 2500A. surplus of 500 gallons per week.B. shortage of 1,000 gallons per week.C. surplus of 1,000 gallons per week.D. shortage of 2,500 gallons per week.

Answer 1

Answer:

B. shortage of 1,000 gallons per week

Explanation:

Price = $1

Quantity demanded = 2,000

Quantity supplied = 1,000

Shortage = Quantity demanded - Quantity supplied

= 2,000 -1,000

= 1,000 gallons per week

Therefore, As per question Quantity demand that is 2,000 and quantity supplied that is 1,000. So, in this given case the Quantity demand is more than the quantity supplied.

Hence, there is shortage of 1,000 gallons per week.