Table 1 -1. Supply and Demand for Personal Computers

-Refer to Table 1 -1. At a market price of $1,800, there will be
A) a surplus or a shortage of 2,000 computers.
B) neither a surplus nor a shortage of computers as the market is in equilibrium at this price.
C) a shortage of 2,000 computers.
D) a surplus of 2,000 computers.

Question

Table 1 -1. Supply and Demand for Personal Computers
 
-Refer to Table 1 -1. At a market price of $1,800, there will be
A) a surplus or a shortage of 2,000 computers. 
B) neither a surplus nor a shortage of computers as the market is in equilibrium at this price. 
C) a shortage of 2,000 computers. 
D) a surplus of 2,000 computers.

Quizplus · Accepted Answer

A surplus occurs when the quantity supplied exceeds the quantity demanded at a given price. If the market price is $1,800 and there is a surplus of 2,000 computers, it means that at this price, suppliers are willing to sell more computers than consumers are willing to buy.