Use the following to answer questions:
Figure: Price and Quantity 1
-(Figure: Price and Quantity 1) In the diagram, at a price of $40, the quantity demanded is ______, the quantity supplied is ______, and there is a ______.
A) 40; 60; surplus of 20 units
B) 80; 20; shortage of 60 units
C) 60; 40; shortage of 20 units
D) 20; 60; surplus of 40 units

Question

Use the following to answer questions:
Figure: Price and Quantity 1 
-(Figure: Price and Quantity 1) In the diagram, at a price of $40, the quantity demanded is ______, the quantity supplied is ______, and there is a ______.
A) 40; 60; surplus of 20 units 
B) 80; 20; shortage of 60 units 
C) 60; 40; shortage of 20 units 
D) 20; 60; surplus of 40 units

Quizplus · Accepted Answer

At a price of $40, the point where the demand and supply curves intersect shows that the quantity demanded is 60 and the quantity supplied is 40. This creates a shortage of 20 units since the quantity demanded is greater than the quantity supplied.

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