Understanding Shortage and Surplus in Economics
The table above shows the relationship between the price of buckets of fried chicken, the quantity demanded, and the quantity supplied. This data is essential in understanding shortages and surpluses in the market.
Shortage Calculation
If the price of buckets of fried chicken is currently $20, there is a shortage of ___ buckets of fried chicken.
What is the shortage of buckets of fried chicken at a price of $20?
Final answer: At a price of $20, there is a shortage of -30 buckets of fried chicken.
Explanation: To determine the shortage of buckets of fried chicken, we need to compare the quantity of buckets demanded and supplied at the given price of $20. From the table, we can see that at $20, the quantity demanded is 20 buckets and the quantity supplied is 50 buckets. To find the shortage, we subtract the quantity supplied from the quantity demanded: 20 - 50 = -30 buckets.
Surplus Calculation
If the price of buckets of fried chicken is currently $20, is there a surplus or shortage of buckets of fried chicken?
Is there a surplus or shortage of buckets of fried chicken at a price of $20?
Final answer: At a price of $20, there's a surplus, not a shortage, of 30 buckets of fried chicken, as the quantity demanded is less than the quantity supplied.
Explanation: The concept this question deals with is a fundamental one in Economics, specifically the law of supply and demand. To solve this, we need to find the difference between the quantity demanded and the quantity supplied for a price of $20. From the given data, we can see that the quantity of buckets of fried chicken demanded at $20 is 20, and the quantity supplied is 50. The shortage is obtained by subtracting the quantity supplied from the quantity demanded. Hence, the shortage is 20 - 50 = -30. Because it's negative, this means that there's actually a surplus, not a shortage. So, at the price of $20, there's a surplus of 30 buckets of fried chicken.