If the price of the good described in Exhibit 41 is $1.20, then there is a

Question

If the price of the good described in Exhibit 4­1 is $1.20, then there is a

Quizplus · Accepted Answer

To determine whether there is a shortage or surplus, we need to compare the quantity demanded at that price with the quantity supplied. From the table in Exhibit 4-1, at a price of $1.20, the quantity demanded is 90 units and the quantity supplied is only 30 units. Therefore, there is a shortage of 60 units (90 - 30 = 60). Option C is the correct choice.

If the Price of the Good Described in Exhibit 4­1

If the Price of the Good Described in Exhibit 41