Figure 4.3
-Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, there is:

Question

Quizplus · Accepted Answer

At a price of $30, the quantity demanded exceeds the quantity supplied by 40 pairs of blue jeans, meaning there is excess demand. This is because the demand curve intersects the supply curve at a point where the quantity supplied is 110 and the quantity demanded is 150, resulting in a shortage of 40 pairs of blue jeans. Therefore, the correct answer is C) excess demand of 40 pairs of blue jeans.

Figure 4.3 -Figure 4.3 Illustrates the Supply and Demand for Blue Jeans