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What Is the Amount of the Shortage or Surplus in the Market

Question 36

Multiple Choice

What is the amount of the shortage or surplus in the market for public transportation when the price ceiling is $1.75?  Market for Public transportation \text { Market for Public transportation }
 Price  Quantity Demanded  Quntity Supplied $0.75100,00065,000$1.0092,00080,000$1.2586,00086,000$1.5080,000100,000$1.7575,000115,000$2.0068,000116,000\begin{array}{lcl}\text { Price }&\text { Quantity Demanded }&\text { Quntity Supplied }\\\$ 0.75 & 100,000 & 65,000 \\\$ 1.00 & 92,000 & 80,000 \\\$ 1.25 & 86,000 & 86,000 \\\$ 1.50 & 80,000 & 100,000 \\\$ 1.75 & 75,000 & 115,000 \\\$ 2.00 & 68,000 & 116,000\end{array}


A) 100,000
B) 86,000
C) 75,000
D) 40,000
E) 0 (zero)

Correct Answer:

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