Graph 7-5
-In Graph 7-5, at the quantity Q₂:
A)the market is in equilibrium
B)willingness to pay is greater than willingness to sell
C)consumer surplus plus producer surplus is maximised
D)willingness to pay is less than willingness to sell

Question

Graph 7-5 
-In Graph 7-5, at the quantity Q₂:
A)the market is in equilibrium 
B)willingness to pay is greater than willingness to sell 
C)consumer surplus plus producer surplus is maximised 
D)willingness to pay is less than willingness to sell

Quizplus · Accepted Answer

At quantity Q₂, willingness to pay is greater than willingness to sell, indicating that consumers value the product more than what producers would accept to sell it for, leading to a situation where demand exceeds supply.

Graph 7-5 -In Graph 7-5, at the Quantity Q₂