270. CSO: 2C3b LOS: 2C3p An economist determined the following market data for a commodity. Price Quantity Supplied Quantity Demanded $25 250 750 50 500 500 75 750 250 100 1,000 0 Based on this information, which one of the following statements is correct? a. In the short-term, there would be excess supply at a price of $40. b. In the long-run, if producers’ costs per unit decline, then a reasonable market clearing price could be $65. c. In the short-term, there would be excess demand at a price of $70. d. In the long-run, if producers’ costs per unit increase, then a reasonable market clearing price could be $70.

2C3P AN ECONOMIST DETERMINED THE FOLLOWING MARKET DATA FOR A COMMODIT...

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270.

CSO: 2C3b

LOS: 2C3p

An economist determined the following market data for a commodity.

Price

Quantity Supplied

Quantity Demanded

$25

250

750

500

750

250

100

1,000

Based on this information, which one of the following statements is correct?

In the short-term, there would be excess supply at a price of $40.

In the long-run, if producers’ costs per unit decline, then a reasonable market

clearing price could be $65.

In the short-term, there would be excess demand at a price of $70.

In the long-run, if producers’ costs per unit increase, then a reasonable market

clearing price could be $70.