-In the above figure, if the price is equal to $40, there is
A) a surplus of 50 units.
B) a shortage of 100 units.
C) an excess quantity demanded of 50 units.
D) an excess quantity supplied of 100 units.

Question

-In the above figure, if the price is equal to $40, there is
A) a surplus of 50 units. 
B) a shortage of 100 units. 
C) an excess quantity demanded of 50 units. 
D) an excess quantity supplied of 100 units.

Quizplus · Accepted Answer

At a price of $40, the quantity supplied exceeds the quantity demanded by 50 units, resulting in a surplus.

-In the Above Figure, If the Price Is Equal to $40