Question 48
Basic Agricultural EconomicsUse the table below.
Demand and Supply Schedules for Mangoes
Price of fruit (Le) — Supply (No. of baskets) — Demand (No. of baskets):
1,000.00 — 10 — 60
2,000.00 — 20 — 50
3,000.00 — 30 — 40
4,000.00 — 40 — 30
5,000.00 — 50 — 20
6,000.00 — 60 — 10
At a unit price of Le 1,000.00, what will be the excess demand over supply of mangoes?
- A.50 baskets
- B.40 baskets
- C.20 baskets
- D.10 baskets
Show the answer and explanation
Answer: A (50 baskets)
Explanation
At Le 1,000 demand is 60 and supply is 10, so excess demand = 50 baskets.