Refer to Figure 3. If the price is $10, there would be a surplus of 600 units. t

Question

Refer to Figure 3. If the price is $10, there would be a surplus of 600 units. there would be a shortage of 600 units. there would be a surplus of 200 units. there would be a shortage of 200 units. Refer to Figure 3. At a price of S10, how many units will be sold? 200 400 600 800 Refer to Figure 3. If the current market price is S10, the market will achieve equilibrium by a price increase, increasing the supply and decreasing the demand. a price decrease, decreasing the supply and increasing the demand. a price decrease, decreasing the quantity supplied and increasing the quantity demanded. a price increase, increasing the quantity supplied and decreasing the quantity demanded.

Explanation / Answer

Question 36) If the price is $ 10, there would be a shortage of 600 Units. (Option B)

Explanation:- Shortage occurs in the economy when the quantity demanded is greater than the quantity supplied. The quantity demanded is 800 units and the quantity supplied is 200 units when the price is $ 10. Thus, there is a shortage of 600 units (800 - 200)

Question 37) At a price of $ 10, The number of units to be sold = 200 Units (Option A)

Question 38) Answer:- Option D) a price increase, increasing the quantity supplied and decreasing the quantity demanded.

Explanation:- If the current market price is $ 10, the market will achieve equilibrium by increasing the price. As a result of increase in price, quantity supplied will increase and the quantity demanded will decrease and thus the equilibrium will be achieved in the economy where the quantity supplied equals to the quantity demanded.

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