Answer to Question #256887 in Economics for Rica Bituag

Question

At this price, the quantity demand is 60,000, which is greater than the quantity supplied, 40,000.Graph the shortage occurs at any price below the intersection of the demand and supply curves. Explain the market shortage on the part of the buyer

Answer 1

If the quantity demand is 60,000, which is greater than the quantity supplied of 40,000, then the amount of shortage is 60,000 - 40,000 = 20,000 units.

The shortage occurs at any price below the intersection of the demand and supply curves, so the quantity bought is 40,000.