Figure 4-20
-Refer to Figure 4-20.If the price is $25,then there would be an excess

Question

Figure 4-20 
-Refer to Figure 4-20.If the price is $25,then there would be an excess

Quizplus · Accepted Answer

At a price of $25, the quantity supplied would be 400 units, while the quantity demanded would only be 100 units. This means that there is an excess supply of 300 units, which would lead to a downward pressure on prices as suppliers compete to sell their goods. Therefore, price would fall until it reaches a point where quantity supplied equals quantity demanded.

Figure 4-20 -Refer to Figure 4-20.If the Price Is $25,then There Would