Question

if the price of this good is $6, then: a) there is an excess demand (a shortage) equal to 210 units. b) there is an excess demand (a shortage) equal to 140 units. c) there is an excess supply (a surplus) equal to 210 units. d) there is an excess supply (a surplus) equal to 140 units.

Answer 1

To determine the quantities demanded and supplied at a price of $120, we would need more information about the demand and supply curves.

Step-by-step explanation:

To determine the quantities demanded and supplied at a price of $120, we would need to refer to the demand and supply curves. From the given information, we know that the equilibrium price is $1.40 and the equilibrium quantity is 600. At a price above the equilibrium like $120, the quantity supplied will exceed the quantity demanded, resulting in an excess supply or surplus. The size of the surplus can be calculated by subtracting the quantity demanded at that price from the quantity supplied at that price.

In this case, since the price is higher than the equilibrium price, the quantity supplied will be greater than the quantity demanded. To find out the specific quantities demanded and supplied at $120, we would need more information about the demand and supply functions or curves.