Figure 3-5
-Refer to Figure 3-5.At a price of $5
A)there is a surplus of 4 units.
B)there is a scarcity of 4 units.
C)there is a shortage of 6 units.
D)there is a shortage of 4 units.

Question

Figure 3-5 
-Refer to Figure 3-5.At a price of $5
A)there is a surplus of 4 units. 
B)there is a scarcity of 4 units. 
C)there is a shortage of 6 units. 
D)there is a shortage of 4 units.

Quizplus · Accepted Answer

At a price of $5, the quantity demanded (12 units) exceeds the quantity supplied (8 units), resulting in a shortage of 4 units. Therefore, the correct choice is D, there is a shortage of 4 units.

Figure 3-5 -Refer to Figure 3-5.At a Price of $5