Figure 3-6 -Refer to Figure 3-6. the Figure Above Represents the Market

Multiple Choice

Figure 3-6

-Refer to Figure 3-6. The figure above represents the market for coffee grinders. Assume that the price of tote bags is $50. At this price:

A) the quantity supplied exceeds the quantity supplied by 100. The price will eventually fall to $25 where quantity demanded will equal quantity supplied.
B) the supply exceeds the demand by 90. Some producers will have an incentive to offer to sell tote bags at a lower price.
C) there is a surplus equal to 90 coffee grinders that will be eliminated when the price falls to $25.
D) there is a surplus equal to 90 coffee grinders and the price of coffee grinders will fall until demand is equal to supply.