Question

**At a price of​ $20, A. there would be a shortage of 4 units. B. there would be a shortage of 8 units. C. there would be a surplus of 0 units. D. there would be a surplus of 8 units.

Answer 1

Economic concepts of supply and demand explain the situations of shortage and surplus. At $20, it's unable to definitively answer without additional information as it relates to the specific units of shortage or surplus in the options provided. Option D.

Step-by-step explanation:

To answer your question regarding the effect of a $2opt0 price, we need to understand the basic principles of supply and demand in economics. In Economics, a shortage or surplus occurs when the price of a good is either below or above the equilibrium price.

If at $20, there is a shortage, it means that the quantity demanded at that price surpasses the quantity supplied. In terms of options A and B, it's indeterminable because the quantity of the shortage is not given.

Conversely, a surplus occurs when the quantity supplied is greater than the quantity demanded. So In the cases C and D at $20, where there is either no surplus or a surplus of 8 units, it would mean that either the market is in equilibrium (Option C) or that the quantity supplied is exceeding the quantity demanded by 8 units (Option D).

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