Refer to the Figure 4-4. If the price is $10, what would happen?

 

a.

There would be a shortage of 600 and the price would rise.

b.

There would be a shortage of 200 and the price would rise.

c.

There would be a surplus of 600 and the price would fall.

d.

There would be a surplus of 200 and the price would fall.

Price $30 25+ 20- 15+ 10+ 5- D 100 200 300 400 500 600 700 800 Quantity 5