Table 1 -1. Supply and Demand for Personal Computers

-Refer to Table 1 -1. At a market price of $1,600, there will be
A) a shortage of 2,000 computers.
B) neither a surplus nor a shortage of computers as the market is in equilibrium at this price.
C) a surplus or a shortage of 2,000 computers.
D) a surplus of 2,000 computers.

Question

Table 1 -1. Supply and Demand for Personal Computers
 
-Refer to Table 1 -1. At a market price of $1,600, there will be
A) a shortage of 2,000 computers. 
B) neither a surplus nor a shortage of computers as the market is in equilibrium at this price. 
C) a surplus or a shortage of 2,000 computers. 
D) a surplus of 2,000 computers.

Quizplus · Accepted Answer

At a market price of $1,600, the quantity demanded is 4,000 computers, while the quantity supplied is only 2,000 computers. This creates a shortage of 2,000 computers.