Use the figure below to answer the following questions. Figure 3.4.2
-At a price of $4 a unit in Figure 3.4.2,
A)the equilibrium quantity is 400 units.
B)there is a surplus of 200 units.
C)the quantity supplied is 400 units.
D)there is a shortage of 200 units.
E)the quantity demanded is 200 units.

Question

Use the figure below to answer the following questions.  Figure 3.4.2
-At a price of $4 a unit in Figure 3.4.2,
A)the equilibrium quantity is 400 units. 
B)there is a surplus of 200 units. 
C)the quantity supplied is 400 units. 
D)there is a shortage of 200 units. 
E)the quantity demanded is 200 units.

Quizplus · Accepted Answer

At a price of $4 a unit, the quantity supplied is 200 units, which is less than the quantity demanded of 400 units, resulting in a shortage of 200 units. Therefore, the correct answer is D.

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