Question: At the farmer's market in Irvine, California, the price of avocados is set at $3 each. At that price, 120 avocados are supplied but only 100 are purchased. Represent this on a supply and demand graph and answer the following questions:
a. Is there a shortage or surplus of avocados? Why do we have a shortage or surplus and how much of a shortage or surplus do we have?
b. If we have a shortage or surplus of avocados, how do we eliminate it?
c. Show part b on a graph.