At the price of K30.00, demand is 200 and supply is 400. What would be the monetary value of shortage or surplus if the price is set at K30.00.
To calculate the monetary value of shortage or surplus at a price of K30.00, we need to compare the quantity demanded and supplied at that price.
Given:
Price = K30.00
Demand = 200
Supply = 400
At a price of K30.00, the quantity demanded is 200 and the quantity supplied is 400. This means there is a surplus of 200 units (400 - 200 = 200).
To calculate the monetary value of the surplus, we need to multiply the surplus quantity by the price:
Monetary value of surplus = Surplus quantity * Price
Monetary value of surplus = 200 units * K30.00
Monetary value of surplus = K6,000.00
Therefore, the monetary value of the surplus at a price of K30.00 would be K6,000.00.