No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Basic Economic Concepts (3 of 10)

Question 3:
The graph below depicts the market for CDs. Which of the following is true at a price of $22? 

A.  There is a surplus of 41 CDs 
B.  There is a shortage of 41 CDs 
C.  There is a shortage of 28 CDs 
D.  There is a surplus of 28 CDs 

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Correct Answer:  D, There is a surplus of 28 CDs. Quantity supplied (41) minus quantity demanded (13) yields the surplus (28).