Answer to Question #205689 in Economics for Tshepiso

Question

This question is based on the following table.

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

In order to answer this question, you should find in the table the row corresponding to R2.00, compare the supply and demand corresponding to this row. If the demand is greater than the supply, then this will mean a shortage, and if the demand is less than the supply, then this is a surplus. To determine the number of units, subtract the smaller ones from the larger indicator.