Answer to Question #205699 in Macroeconomics for Tshepiso

Question

This question is based on the following table.

Price quantity demanded quantity supplied

R10 10 100

R8 20 80

R6 30 60

R4 40 40

R2 50 20

R0 60 0

If the price of this good is R2,00, there would be a _________ of _________ units.

•  A. surplus; 20
•  B. shortage; 50
•  C. surplus; 30
•  D. shortage; 30

Answer 1

If the price of this good is R2, there would be a shortage of 30 units because the quantity demanded is 50 units but only 20 units are supplied.