-Refer to the graph above to answer this question.What does the distance Q1 - Q2 represent?
A)A decrease in the quantity supplied.
B)A shortage at price P1.
C)A surplus at price P1.
D)The result of a decrease in the sales tax.

Question

-Refer to the graph above to answer this question.What does the distance Q1 - Q2 represent?
A)A decrease in the quantity supplied. 
B)A shortage at price P1. 
C)A surplus at price P1. 
D)The result of a decrease in the sales tax.

Quizplus · Accepted Answer

The distance Q1 - Q2 represents a shortage at price P1 because it indicates the difference between the quantity demanded (Q1) and the quantity supplied (Q2) at that price level, suggesting that the demand exceeds the supply.

-Refer to the Graph Above to Answer This Question