Answer to Question #308996 in Macroeconomics for Jackey

Question

If the price is set at R10, the market will

a. experience a surplus (excess supply) of 50

b. experience a surplus (excess supply) of 40

c. experience a shortage (excess demand) of 40

d. experience a shortage (excess demand) of 10

e. still be in equilibrium

Answer 1

The correct answer is;

C. Experience a shortage (excess demand) of 40)

Since the Demand is greater than the supply by 40 (50-10) there is a shortage of demand by 40.