Final answer:
Without specific quantities demanded and supplied for good X at the price of $0.50, it is impossible to determine whether a surplus or shortage would occur in the market. Market forces naturally drive prices to equilibrium over time.
Step-by-step explanation:
The student's question pertains to a market equilibrium scenario where there is a discrepancy between the quantity demanded and the quantity supplied at a given price. To determine whether there will be a surplus or shortage at a price of $0.50 for good X, we need additional information on the quantities demanded and supplied at that price.
The data provided in other examples, such as the gas market scenario where a surplus of 90 gallons occurs because the quantity supplied (640 gallons) exceeds the quantity demanded (550 gallons) at a price above equilibrium, illustrates how such conclusions are drawn. Without specific figures for good X, we cannot accurately forecast the market condition at the $0.50 price point.
Understanding these concepts helps to grasp how market forces lead to adjustments in pricing to reach equilibrium, where the quantity demanded equals the quantity supplied, as illustrated in the wheat flour example mentioned. A price below equilibrium creates a shortage, prompting prices to rise until equilibrium is restored. Conversely, a price above equilibrium leads to surplus, putting downward pressure on prices.
Unfortunately, the specific information needed to answer this question is not provided in the given references. It is necessary to have a supply and demand schedule or curve to determine the quantities demanded and supplied at a specific price. Without this information, we cannot determine whether there would be a shortage or surplus at a price of $120.
Therefore, we cannot provide a definitive answer to this question based on the given information.