Supply 40 20 Demand 50 100 150 200 Quantity 14. A price of $60 in this market wi

Question

Supply 40 20 Demand 50 100 150 200 Quantity 14. A price of $60 in this market will result in: a. equilibrium. b. a shortage of 50 units. c. a surplus of 50 units d. a surplus of 100 units e. a shortage of 100 units. 15. A price of $20 in this market will result in: a. equilibrium b. a shortage of 50 units. c. a surplus of 50 units. d. a surplus of 100 units e. a shortage of 100 units. 16. The highest price that buyers will be willing and able to pay for 100 units of this product is: a. $30 b. $60 c. $40 d. $20

Explanation / Answer

1- here the equilibrium price is 40, so a price above the equilibrium price will lead to a demand that is lower than the supply, thus there will be a surplus of 100

so answer is d

2-  here the equilibrium price is 40, so a price the belowe quilibrium price will lead to a demand that is higher than the supply, thus there will be a shortage of 100

so answer is e

3- the highest price the buyer is willing to pay for 100 units is 60 as can be seen from the digram

so abswer is 60

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