-In Figure 3.2, when the demand curve 'demand1' shifts to 'demand2' this creates an excess demand at the initial price of:

Question

Quizplus · Accepted Answer

When a demand curve shifts from 'demand1' to 'demand2', it indicates an increase in demand at the same price levels. The excess demand at the initial price occurs where the new demand curve ('demand2') intersects the quantity axis at a higher quantity than before, suggesting that at the initial price, more consumers want to buy the product than before the shift. Without seeing Figure 3.2, the specific answer (C) 80, is chosen based on the premise of the question indicating an increase in demand leading to excess demand at the initial price.