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Figure: Market Equilibrium
-(Figure: Market Equilibrium) Refer to the figure. At a price of $1, the market is characterized by a(n):
A) excess supply of 2 units.
B) excess demand of 4 units.
C) surplus of 4 units.
D) shortage of 6 units.

Question

Use the following to answer questions:
Figure: Market Equilibrium 
-(Figure: Market Equilibrium) Refer to the figure. At a price of $1, the market is characterized by a(n):
A) excess supply of 2 units. 
B) excess demand of 4 units. 
C) surplus of 4 units. 
D) shortage of 6 units.

Quizplus · Accepted Answer

At a price of $1, the quantity demanded exceeds the quantity supplied by 4 units, indicating an excess demand.

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