Figure 4.2.3.
-Look at Figure 4.2.3. At a price of $12 there is a
A) surplus of 20.
B) shortage of 20.
C) surplus of 10.
D) surplus of 40.
E) shortage of 8.

Question

Figure 4.2.3.
-Look at Figure 4.2.3. At a price of $12 there is a
A) surplus of 20. 
B) shortage of 20. 
C) surplus of 10. 
D) surplus of 40. 
E) shortage of 8.

Quizplus · Accepted Answer

At a price of $12, the quantity supplied exceeds the quantity demanded, resulting in a surplus. The specific numbers for the surplus (20, 10, 40, 8) cannot be determined without seeing Figure 4.2.3, but the concept of a surplus at a price above equilibrium is correct.

Figure 4.2.3. -Look at Figure 4.2.3. at a Price of $12 There