-Refer to the above figure. A shortage will exist when
A) the price is between $0 and $6.
B) the price equals $6.
C) the price equals $10.
D) quantity demanded equals 3.

Question

-Refer to the above figure. A shortage will exist when
A) the price is between $0 and $6. 
B) the price equals $6. 
C) the price equals $10. 
D) quantity demanded equals 3.

Quizplus · Accepted Answer

A shortage occurs when the price is below the equilibrium price, leading to a situation where the quantity demanded exceeds the quantity supplied. In this case, any price between $0 and $6 would create a shortage because the equilibrium price is not specified but implied to be above $6, where supply and demand balance.

-Refer to the Above Figure