-Refer to Figure 2.15 to answer this question.Assume that there is a shortage of 60 units.What does this mean?
A)The price must be $800.
B)The price must be above equilibrium.
C)The price must be $1,200.
D)The price must be $600.

Question

-Refer to Figure 2.15 to answer this question.Assume that there is a shortage of 60 units.What does this mean?
A)The price must be $800. 
B)The price must be above equilibrium. 
C)The price must be $1,200. 
D)The price must be $600.

Quizplus · Accepted Answer

A shortage of 60 units indicates that the demand for the product exceeds the supply at the current price, leading to upward pressure on the price. However, without seeing Figure 2.15, it's impossible to accurately determine the specific price level associated with a 60-unit shortage. The answer provided assumes familiarity with the figure mentioned, suggesting that at a price of $800, the quantity demanded exceeds the quantity supplied by 60 units, indicating a shortage.