Exhibit 4-1

-If the price of the good described in Exhibit 4-1 is $1.20, then there is a

Name: Exhibit 4-1 -If the price of the good described in Exhibit 4-1 is $1.20, then there is a
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Question

Exhibit 4-1
  
-If the price of the good described in Exhibit 4-1 is $1.20, then there is a

Quizplus · Accepted Answer

At a price of $1.20, the quantity demanded is 90 units (found by going up from the price on the demand curve) and the quantity supplied is only 30 units (found by going down from the price on the supply curve). This creates a shortage of 60 units (90-30), so the correct answer is C.

Exhibit 4-1 -If the Price of the Good Described in Exhibit 4-1