Given the following diagram: If the actual market price were fixed at $6 per unit in the above diagram
A)There would be a surplus of 40 units.
B)There would be a surplus of 20 units.
C)There would be a shortage of 40 units.
D)There would be a shortage of 20 units.

Question

Given the following diagram:  If the actual market price were fixed at $6 per unit in the above diagram
A)There would be a surplus of 40 units. 
B)There would be a surplus of 20 units. 
C)There would be a shortage of 40 units. 
D)There would be a shortage of 20 units.

Quizplus · Accepted Answer

At the market price of $6, the quantity demanded is 80 units and the quantity supplied is 60 units. Therefore, there would be a shortage of 20 units (80-60=20).

Given the Following Diagram: If the Actual Market Price