The Graph Shown Depicts the Market for a Good

question 50

Multiple Choice

The graph shown depicts the market for a good. At a price of $12, there is:

• A) a surplus (excess supply) of 10,000 units.
• B) a shortage (excess demand) of 10,000 units.
• C) a shortage (excess demand) of 7,000 units.
• D) a surplus (excess supply) of 3,000 units.

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Definitions:

Commodity

An essential commodity employed in business activities that is substitutable with other commodities of the identical category.

Maximise

The process of increasing a particular variable or outcome to its highest possible value under given constraints.

Input

Resources used in the production process to create goods or provide services.

Proportions

The relationship between parts and a whole, often expressed as a ratio or fraction.