Use the figure below to answer the following questions. Figure 3.4.1 -At price P₁ in Figure 3.4.1 A)there is a surplus in the amount of Q₄ - Q₂. B)there is a shortage in the amount of Q₄ - Q₂. C)there is a tendency for the price to fall. D)the equilibrium quantity is Q₂. E)the equilibrium quantity is Q₄.

Question

Quizplus · Accepted Answer

At price P₁, the quantity demanded (Q₂) is less than the quantity supplied (Q₄), resulting in a shortage of Q₄ - Q₂.

Use the Figure Below to Answer the Following Questions