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Refer to the Diagram Given Below

Question 227

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Refer to the diagram given below. Refer to the diagram given below.   The above diagram shows the demand for and the supply of Product X.Assume that the market for Product X is competitive.If the supply curve is S<sub>1</sub> and the demand curve is D<sub>0</sub>, then: A) a shortage would occur at any price above 0G. B) there is a surplus of AC units at OF. C) a surplus of GH units would occur. D) there is a shortage of AC units at OF. The above diagram shows the demand for and the supply of Product X.Assume that the market for Product X is competitive.If the supply curve is S1 and the demand curve is D0, then:


A) a shortage would occur at any price above 0G.
B) there is a surplus of AC units at OF.
C) a surplus of GH units would occur.
D) there is a shortage of AC units at OF.

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