Table 2 shows the demand schedule for oranges in a market on a particular day.Referring to Table 2, which statement is CORRECT?

Question

BlackTom AI · Accepted Answer

At a price of $4.50 the quantity demanded is 100 kg per day (from the table), so if 500 kg are supplied there is an excess of supply equal to 500 − 100 = 400 kg; this makes option c correct.

1) Relevant knowledge points and concepts
- Demand schedule: for each price the table gives the quantity consumers want to buy.
- Surplus vs shortage: surplus = quantity supplied − quantity demanded when supply > demand; shortage = quantity demanded − quantity supplied when demand > supply.
- Law of demand (context): as price rises, quantity demanded falls (seen in the table).

2) Step-by-step reasoning
- Read the table for the price in each option to find quantity demanded at that price.
- Compare the stated quantity supplied (in the option) to the quantity demanded (from the table).
- Compute difference and interpret sign: positive difference → surplus, negative → shortage.

3) Calculations (intermediate steps shown)
- For option c: price = $4.50 → quantity demanded = 100 kg (table). Quantity supplied = 500 kg (given).
  Surplus = supplied − demanded = 500 − 100 = 400 kg → surplus of 400 kg.

4) Why the correct answer is correct
- The calculation directly follows the definition of surplus and the table’s demand value at $4.50. Because supply (500) exceeds demand (100) by 400, a 400 kg surplus exists.

5) Why the other options are incorrect
- a: At $3.00 demand = 400 kg, supplied = 200 → shortage = 400 − 200 = 200 kg (shortage, not surplus), so statement claiming a surplus is wrong.
- b: At $2.50 demand = 500 kg, supplied = 200 → shortage = 500 − 200 = 300 kg (not 400), so the numerical shortage is incorrect.
- d: At $4.00 demand = 200 kg, supplied = 400 → surplus = 400 − 200 = 200 kg (a surplus), so claiming a shortage is incorrect.

Conclusion: Option c is correct — there would be a surplus of 400 kg at a price of $4.50 if 500 kg were supplied, matching the provided answer.

Table 2 shows the demand schedule for oranges in a market on a particular day.Referring to Table 2, which statement is CORRECT?Single choice

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