The following figure shows the demand and supply curves for gas. D₁ is the initial demand curve, and S is the supply curve.

-Refer to the figure above.When the demand curve for gas is D₂ and the supply curve for gas is S,the surplus in the market when price is $8 is ________ gallons.

Question

The following figure shows the demand and supply curves for gas. D₁ is the initial demand curve, and S is the supply curve.
 
-Refer to the figure above.When the demand curve for gas is D₂ and the supply curve for gas is S,the surplus in the market when price is $8 is ________ gallons.

Quizplus · Accepted Answer

At a price of $8, the quantity demanded is 70 gallons and the quantity supplied is only 20 gallons, resulting in a surplus of 50 gallons (70-20 = 50). Therefore, the correct choice is (C) 50.

The Following Figure Shows the Demand and Supply Curves for Gas