(Table) in the Table, at a Price of $12 A) a Shortage of 20 Units Occurs

question 85

Multiple Choice

(Table) In the table, at a price of $12: $$\begin{array} { l c c } \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Supplied }\end{array} \\\$ 15 & 40 & 80 \\\$ 12 & 50 & 70 \\\$ 10 & 60 & 60 \\\$ 7 & 70 & 50 \\\$ 5 & 80 & 40\end{array}$$

• A) a shortage of 20 units occurs.
• B) equilibrium output is achieved.
• C) a surplus of 40 units occurs.
• D) a surplus of 20 units occurs.

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Definitions:

Permanent Income

An economic theory suggesting that people's consumption choices are influenced more by their lifetime income expectations than by their current income.

Economic Mobility

The ability of an individual, family, or some other group to improve (or decline) their economic status, typically measured over generations.

Inequality Measurement

The analysis or quantification of disparities in income, wealth, health, or other social and economic dimensions.

Income Distributions

The way in which total income is shared among the population or different segments of the economy.