1 The demand and supply schedules for wholesale cashew nuts

1. The demand and supply schedules for wholesale cashew nuts are shown in the table below. Suppose that the quantity currently being traded is 100 pounds. This suggests which one of the following?

Price Quantity Quantity (S/lb) Demanded Supplied $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 0 100 250 350 600 800 1,000 1,200 1,000 750 600 350 300 250 100 0

The correct answer is option A. There is a price ceiling of $1 in this market