-Refer to the information above to answer this question.Assume that there is a shortage of 40 units.What does this mean?
A)Price will fall.
B)Price must be $8.
C)The quantity traded is 40.
D)Buyers would be willing to pay an additional $4 per unit for the quantity being traded.

Question

-Refer to the information above to answer this question.Assume that there is a shortage of 40 units.What does this mean?
A)Price will fall. 
B)Price must be $8. 
C)The quantity traded is 40. 
D)Buyers would be willing to pay an additional $4 per unit for the quantity being traded.

Quizplus · Accepted Answer

A shortage indicates that the demand for a product exceeds the supply at the current price, leading buyers to potentially pay more per unit to obtain the desired quantity, hence option D is correct.

-Refer to the Information Above to Answer This Question