The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve.

-Refer to the figure above.When the supply curve of flash drives is S₂ and the demand curve of flash drives is D,what is the surplus in the market when the price is $7?

Question

The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve.
 
-Refer to the figure above.When the supply curve of flash drives is S₂ and the demand curve of flash drives is D,what is the surplus in the market when the price is $7?

Quizplus · Accepted Answer

At a price of $7, the quantity demanded is 100 and the quantity supplied is also 100, which means there is no surplus or shortage in the market. Therefore, the answer is (A) 0 units.

The Following Figure Shows the Demand and Supply Curves for USB