Use the Following to Answer Questions

question 55

Multiple Choice

Use the following to answer questions:
Figure: Price and Quantity 1
-(Figure: Price and Quantity 1) In the diagram, at a price of $40, the quantity demanded is ______, the quantity supplied is ______, and there is a ______.

• A) 40; 60; surplus of 20 units
• B) 80; 20; shortage of 60 units
• C) 60; 40; shortage of 20 units
• D) 20; 60; surplus of 40 units