Question: 1. (a) If the price is $20, what quantity is supplied? (b) If the price is $20, what quantity is demanded? (c) Is there a

1. (a) If the price is $20, what quantity is supplied?

(b) If the price is $20, what quantity is demanded?

(c) Is there a surplus or a shortage when the price is $20? How many units is this surplus or shortage?

2. Will a price above the equilibrium price result in a market surplus or shortage?

Complete Problem by using the accompanying figure, which shows a supply function and a demand function.

40- 30+ 20 10 10 20 30 40 50 60

40- 30+ 20 10 10 20 30 40 50 60

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