Question 17
Price DeterminationThe table below shows the supply and demand schedule for apples. Use it to answer the question.
Price ($) | Quantity demanded | Quantity supplied
10 | 50 | 25
20 | 35 | 35
30 | 20 | 45
40 | 5 | 55
At what price is excess supply equal to 25?
- A.$10.
- B.$20.
- C.$30.
- D.$40.
Show the answer and explanation
Answer: C ($30.)
Explanation
At $30: 45 − 20 = 25.