4.3 Market Equilibrium: Bringing Demand and Supply Together

-Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, there is an

Name: 4.3 Market Equilibrium: Bringing Demand and Supply Together -Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, there is an
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Question

4.3 Market Equilibrium: Bringing Demand and Supply Together
 
-Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, there is an

Quizplus · Accepted Answer

If the price is below the equilibrium price, there will be excess demand. The problem states an excess demand of 8 t-shirts at $7.