The Graph Shown Depicts the Market for a Good

question 18

Multiple Choice

The graph shown depicts the market for a good. Suppose the government sets the price of this good at $36. At this price, there is:

• A)a surplus (excess supply)of 9,000 units.
• B)a shortage (excess demand)of 2,000 units.
• C)a shortage (excess demand)of 7,000 units.
• D)a surplus (excess supply)of 7,000 units.

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Definitions:

Ownership Utility

The value or benefit that comes from owning a product or service, above and beyond its functionality or use.

Place Utility

The value added to products by having them available at a location where they are needed or wanted by consumers.

Time

A continuous, measurable quantity in which events occur in a sequence from the past through the present to the future.

Sales Contract

A legally binding agreement between a buyer and seller which outlines the terms of sale for goods or services.