Use the figure below to answer the following questions.

Figure 3.4.1
-At price P₁ in Figure 3.4.1

Question

Use the figure below to answer the following questions.
  
Figure 3.4.1
-At price P₁ in Figure 3.4.1

Quizplus · Accepted Answer

At price P₁, the quantity demanded by consumers (Q₂) is less than the quantity supplied by producers (Q₄). This creates a shortage in the market, as there are not enough goods or services to meet the demand. Therefore, the correct answer is B) there is a shortage in the amount of Q₄ - Q₂.

Use the Figure Below to Answer the Following Questions