Exhibit 3-13 Supply and demand curves Which of the graphs in Exhibit 3-13 illustrates a surplus exists at the indicated market price?

Question

Exhibit 3-13  Supply and demand curves  Which of the graphs in Exhibit 3-13 illustrates a surplus exists at the indicated market price?

Quizplus · Accepted Answer

In Diagram B, the quantity supplied (Qs) is greater than the quantity demanded (Qd) at the given market price, indicating a surplus. In Diagram A, the quantity demanded is greater than the quantity supplied, indicating a shortage. In Diagram C, the quantity supplied and quantity demanded are equal, indicating equilibrium.

Exhibit 3-13 Supply and Demand Curves Which of the Graphs