Use the following to answer question:
-(Figure: Supply,Demand,and Equilibrium)Use Figure: Supply,Demand,and Equilibrium.In the figure,there will be an excess supply of the good at a price of P1.

Question

Use the following to answer question: 
-(Figure: Supply,Demand,and Equilibrium)Use Figure: Supply,Demand,and Equilibrium.In the figure,there will be an excess supply of the good at a price of P1.

Quizplus · Accepted Answer

In the figure, the equilibrium price is P2 where the quantity demanded and quantity supplied are equal. At a price of P1, there will be excess demand for the good, not excess supply.

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