If the price is £125, what is the amount of surplus or shortage if there is any?

Question

BlackTom AI · Accepted Answer

We start by restating the given item: a price of £125 is set, and we are asked to determine whether there is a surplus or shortage, if any, at that price.
Option a: 'Cannot be determined due to insufficient information.' This is a cautious and often correct stance when we lack essential data, since to determine surplus or shortage we need the quantities demanded and supplied at £125 (or the demand and supply schedules/curves or equilibrium price). Without those, the sign and size of any surplus or shortage cannot be established.
Option b: 'There is neither surplus not shortage because quantity demanded is equal to quantity supplied at the price level.' This statement asserts a market-clearing price at £125. However, it requires explicit evidence (Qd = Qs at £125). In the absence of any demand or supply data or a stated equilibrium condition at £125, we cannot assume this equality holds. Therefore this option is not justified.
Option c: 'There is a shortage of 120.' This would mean Qd exceeds Qs by 120 units at £125. Again, to claim a specific shortage amount, we would need the actual quantities demanded and supplied at that price. Without them, asserting a 120-unit shortage is unfounded.
Option d: 'There is a surplus of 120.' This would mean Qs exceeds Qd by 120 units at £125. Like the previous options, it requires concrete demand and supply quantities at £125 to substantiate. In the absence of data, this specific figure cannot be verified.
In summary, without the actual demand and supply information at the price of £125, we cannot determine whether a surplus or shortage exists, nor its magnitude. The safest mathematical stance is that the information provided is incomplete for making a determination, which aligns with option a, while the other options posit specific outcomes that are not supported by any given data.

252_EC201 Microeconomics

If the price is £125, what is the amount of surplus or shortage if there is any?

查看解析

登录即可查看完整答案

类似问题

Price $ Qd Qs 1 90 20 2 70 30 3 50 50 4 45 80 5 43 120 4. Using the table above, if the price is $4, then there will be

If the price is £125, is there a surplus or a shortage?

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单