The table sets out the demand and supply schedules for roses on a normal weekend. 1. If the price of a rose is 6 describe the situation in the rose market. Explain how the price adjusts. If the price of a rose is 6 there is a __ of roses and the price of a rose __ A. shortage; falls B. surplus; falls C. surplus; rises D. shortage; rises

To determine the correct answer, we need to analyze the demand and supply schedules for roses at a price of $6.<br /><br />Step 1: Look at the demand schedule for roses at a price of $6. According to the table, the quantity demanded of roses at a price of $6 is 40.<br /><br />Step 2: Look at the supply schedule for roses at a price of $6. According to the table, the quantity supplied of roses at a price of $6 is 60.<br /><br />Step 3: Compare the quantity demanded and the quantity supplied at a price of $6. In this case, the quantity supplied (60) is greater than the quantity demanded (40).<br /><br />Step 4: Based on the comparison, we can conclude that there is a surplus of roses in the market at a price of $6.<br /><br />Step 5: To explain how the price adjusts, we need to understand the concept of market equilibrium. In a market, the price adjusts to balance the quantity demanded and the quantity supplied. When there is a surplus, the price tends to fall to encourage more demand and reduce the surplus.<br /><br />Therefore, the correct answer is:<br />B. surplus; falls