Supply Price Demand 50 100 150 200 Quantity Refer to the diagram. A price of $20...

Question

Question

Answer 1

Answer #1

Ans) At equilibrium quantity demanded is equal to quantity supplied. This is market clearing point.

When price is above equilibrium price, there is surplus or excess supply.

When price is below equilibrium price, there is shortage or excess demand.

Here, equilibrium price is $40.

At price of $20, there will be shortage of÷

Qd= 200 units

Qs= 100 units.

Shortage = Qd-Qs = 200-100 = 100 units.

Option b

Supply Price 40 SHORTAGE Demand 0 50 100 150 Quantity 260

Answer 2

Similar Homework Help Questions

Supply Price Demand 50 100 150 200 Quantity Refer to the diagram. A price of $20 in this market will result in a

Supply Price Demand 50 100 150 200 Quantity Refer to the diagram. A price of $20 in this market will result in a
Supply $60- Price Demand 50 200 100 150 Quantity Refer to the diagram. A price of...

Supply $60- Price Demand 50 200 100 150 Quantity Refer to the diagram. A price of $20 in this market will result in a
Supply $60 20 Demand 0 50 100 150 200 Quantity Refer to the diagram. A price...

Supply $60 20 Demand 0 50 100 150 200 Quantity Refer to the diagram. A price of $20 in this market will result in a Price 40

Price $30 25 20 15 10 D 0 150 Quantity 50 250 In a competitive market...

Price $30 25 20 15 10 D 0 150 Quantity 50 250 In a competitive market illustrated by the diagram above, a price ceiling of $l- per unit will result in Select one .a. a surplus of f.. units O b. a surplus of fo. units .c. a shortage ofro. units d. a shortage of r.. units Refer to the provided figure. If box A represents households, B the product market, and C businesses, and if flow (F) represents revenues,...
Price Supply $1.60- 1.00 50 Demand 0 130 200 290 Quantity Refer to the diagram. The...

Price Supply $1.60- 1.00 50 Demand 0 130 200 290 Quantity Refer to the diagram. The equilibrium price and quantity in this market will be
Refer to the graph below for questions 7-9: Price Supply 15 12 Demand 40 50 80...

Refer to the graph below for questions 7-9: Price Supply 15 12 Demand 40 50 80 104 130 Quantity Suppose the market in the graph is originally in equilibrium at a price of $15. If the government implements a price ceiling at $20, what will be the market outcome? 7. a. Surplus of 90 units b. Surplus of 54 units c. Shortage of 90 units d. Shortage of 54 units e. Market will remain in equilibrium with a quantity of...

Exhibit 3-4 Price (dollars) OT 5 10 15 20 25 Quantity Refer to Exhibit 3-4. A...

Exhibit 3-4 Price (dollars) OT 5 10 15 20 25 Quantity Refer to Exhibit 3-4. A price of $6 in the market will result in a a. shortage of 10 units. of units c. surplus of 5 units. d. shortage of 5 units. ANS PTS: 1 DIF: Difficulty: Moderate NAT: BUSPROG: Analytic LOC: DISC: Supply and demand KEY: Bloom's: Comprehension 53. Refer to Exhibit 3-4. At a price of $2 units will be exchanged. d. 20 ANSPTS: 1 DIF: Difficulty:...
Use the supply and demand schedule below to answer the following questions: Price Quantity Demand Quantity...

Use the supply and demand schedule below to answer the following questions: Price Quantity Demand Quantity Supplied $15 80 40 25 70 50 35 60 60 45 50 70 55 40 80 a. What is the market equilibrium price and quantity? b. If there is a shortage of 20 units, what is the market price? c. c. At a price of $45, the market experiences a surplus of how many units?
Refer to the demand schedule below: Quantity demanded Price ($) 80 70 60 50 100 150...

Refer to the demand schedule below: Quantity demanded Price ($) 80 70 60 50 100 150 200 250 300 350 400 0 Price increases from $40 to $50. Demand is (Click to select) , and total revenue (Click to select)

Refer to the picture. At a price of $2 there is a Price (dollars) -- -...

Refer to the picture. At a price of $2 there is a Price (dollars) -- - 150 250 350 Quantity surplus of 150 units shortage of 350 units surplus of 100 units shortage of 200 units Price Price (b) Quantity per period Quantity per period Price Price (d) Quantity per period Quantity per period A decrease in the fee charged for movie rentals would result in a change illustrated by: the move from j to k in Figure (c). the...