Figure 3.5
-Refer to Figure 3.5.What would be the outcome if the price is $20?
A)There would be a surplus of 8 units.
B)There would be a shortage of 8 units.
C)There would be a surplus of 0 units.
D)There would be a shortage of 4 units.

Question

Figure 3.5 
-Refer to Figure 3.5.What would be the outcome if the price is $20?
A)There would be a surplus of 8 units. 
B)There would be a shortage of 8 units. 
C)There would be a surplus of 0 units. 
D)There would be a shortage of 4 units.

Quizplus · Accepted Answer

At a price of $20, the quantity supplied would exceed the quantity demanded, resulting in a surplus of goods. This is because, at higher prices, sellers are willing to supply more of the good, while buyers are willing to purchase less.

Figure 3.5 -Refer to Figure 3.5.What Would Be the Outcome If the Outcome