Question

Use the table provided. Suppose the quantity demanded increased by 500 units at each price. At a price of $14 per unit, would there be a surplus or shortage of this product? How much would the surplus or shortage be?

Price	Quantity Demanded	Quantity Supplied
4	450	250
6	400	300
8	350	350
10	300	400
12	250	450
14	200	500
16	150	550

Group of answer choices

surplus = 100

shortage = 100

surplus = 600

shortage = 400

Answer 1

of too 9f the quantity Demanded Inceeases by 500 units at each Pecice then, Quantity Demanded will be at each price. Therefore, Pecice Quantity Demanded Duantity Seepplied 450+500 = 950 250 300 400 500 = goo 350 350+500 = 850 300 +500 - 800 you 250 +500 = 750 450 500 20+ 500 = 700 16 550 150 +500 = 650 I s 25 At price of $14 Quantity Demanded is 700, Quantity supplied is soo Since Demand > Supply Therefore, there is a shostage of good Shostage - Dem and supply - - Too - 500 1 = 2oo write Shortage will be doo wuits, All the option given are wrong