Final answer:
Without specific supply and demand data, we cannot determine the exact quantities demanded and supplied at a $120 price point, nor can we calculate the exact size of a potential shortage or surplus.
Step-by-step explanation:
When the price of a good is $120, the quantities demanded and supplied are determined by the supply and demand curve of that particular good in the market. Unfortunately, without specific details regarding the supply and demand equations or schedules for this good, we are unable to compute the exact quantities demanded and supplied.
If the quantity demanded at this price is higher than the quantity supplied, a shortage occurs because consumers want more of the good than producers are willing to supply at that price. Alternatively, if the quantity supplied is higher than the quantity demanded, a surplus occurs because producers are supplying more of the good than consumers are willing to buy.
The size of the shortage or surplus can be found by subtracting the quantity supplied from the quantity demanded (for shortages) or the quantity demanded from the quantity supplied (for surpluses).