-Refer to Figure 3 -4

Multiple Choice

-Refer to Figure 3 -4. The figure above represents the market for canvas bags. Assume that the price o bags is US$15. At this price

A) the quantity demanded exceeds the quantity supplied of bags by 75. The price will eventually rise to US$25 where quantity demanded will equal quantity supplied.
B) the demand exceeds the supply of bags by 55. Some consumers will have an incentive to offer to buy tote bags at a higher price.
C) there is a shortage, equal to 55 bags, that will be eliminated when the price rises to US$25.
D) there is a shortage, equal to 55 bags; the price of tote bags will rise until demand is equal to supply.