Narrbegin Exhibit 3 -In Exhibit 3

Narrbegin Exhibit 3.5 Demand and supply data for radios
$$\begin{array} { | c | c | c | } \hline \text { Price (\$) } & \begin{array} { c } \text { Quantity demanded } \\\text { of radios }\end{array} & \begin{array} { c } \text { Quantity supplied } \\\text { of radios }\end{array} \\\hline 75 & 400 & 800 \\\hline 70 & 450 & 750 \\\hline 65 & 500 & 700 \\\hline 60 & 550 & 650 \\\hline 55 & 600 & 600 \\\hline 50 & 650 & 550 \\\hline 45& 700 & 500 \\\hline 40 & 750 & 450 \\\hline\end{array}$$
-In Exhibit 3.5, at any market price of radios below $55, an _____ would result, causing the price to _____.

A) excess demand; rise
B) excess supply; rise
C) excess demand; fall
D) excess supply; fall

Correct Answer:

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