if the price is $15,\na. there would be a surplus of 400 units.\nb. there would be a shortage of 400…

if the price is $15,\na. there would be a surplus of 400 units.\nb. there would be a shortage of 400 units.\nc. there would be a shortage of 300 units.\nd. there would be a surplus of 300 units.

if the price is $15,\na. there would be a surplus of 400 units.\nb. there would be a shortage of 400 units.\nc. there would be a shortage of 300 units.\nd. there would be a surplus of 300 units.

Answer

Explanation:

Step1: Identify quantity - demanded and quantity - supplied at $15

From the graph, at a price of $15, the quantity - demanded is 700 units and the quantity - supplied is 300 units.

Step2: Calculate the shortage

Shortage = Quantity - demanded - Quantity - supplied. So, Shortage = 700 - 300 = 400 units.

Answer:

B. there would be a shortage of 400 units