- Refer to the Table Above

question 48

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Price Per } \\\text { Pair }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Supplied }\end{array} \\\hline \text { R20 } & 18 & 3 \\\hline \text { R40 } & 14 & 4 \\\hline \text { R60 } & 10 & 5 \\\hline \text { R80 } & 6 & 6 \\\hline \text { R100 } & 2 & 8 \\\hline\end{array}$$
- Refer to the table above. In the supply and demand schedules for socks shown here, if a price floor of R100 is imposed by the government, there will be a

• A) surplus of socks equal to 8 pairs.
• B) shortage of socks equal to 16 pairs.
• C) surplus of socks equal to 6 pairs.
• D) market clearing quantity of 6 pairs of socks exchanged.

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Definitions:

Liable

Legally responsible or obligated, often in the context of paying compensation for harm or damage.

Damaged

Refers to items or property that have been harmed or adversely affected, usually reducing their value or functionality.

Merchant

An individual or business involved in the wholesale purchase or retail sale of goods for profit.

Non-necessary Item

Refers to goods or services that are not essential for survival or basic living and are often categorized as luxury or discretionary purchases.