Exhibit 4-6 -Refer to the Exhibit

question 40

Multiple Choice

Exhibit 4-6
$$\begin{array} { r c c } \hline \text { Price } & \begin{array} { c } \text { Quantity } \\\text { demanded }\end{array} & \begin{array} { c } \text { Quantity } \\\text { supplied }\end{array} \\\hline \$ 1.00 & 100 & 10 \\1.20 & 90 & 30 \\1.40 & 80 & 50 \\1.50 & 70 & 70 \\1.60 & 60 & 90 \\\hline\end{array}$$
-Refer to the exhibit.Suppose the price of the good is $1.60.Is there a shortage or a surplus, and by what amount?  

• A) a shortage, 30 units 
• B) a surplus, 30 units 
• C) a shortage, 20 units 
• D) a surplus, 20 units

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Definitions:

Opportunity Cost

The value of the next best alternative that is foregone when making a choice.

Tuition

The fee that educational institutions charge for instruction and training.

Work Hours

The period of time during which an individual is actively engaged in work tasks.

Opportunity Cost

The charge of letting go of the subsequent best choice when deliberating on options.