Figure 3.6 -Refer to Figure 3.6.The Figure Above Represents the Market for Represents

Multiple Choice

Figure 3.6

-Refer to Figure 3.6.The figure above represents the market for canvas tote bags.Assume that the price of tote bags is $15.At this price:

A) the quantity demanded exceeds the quantity supplied of tote bags by 75. The price will eventually rise to $25 where quantity demanded will equal quantity supplied.
B) the demand exceeds the supply of tote 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 tote bags; the price of tote bags will rise until demand is equal to supply.
D) there is a shortage, equal to 55 tote bags, that will be eliminated when the price rises to $25.