Refer to the accompanying figure. If the current market price were $20:
A)the market would be in equilibrium.
B)there would be an excess supply of 25 units.
C)there would be an excess demand of 25 units.
D)there would be an excess demand of 35 units.

Question

Refer to the accompanying figure. If the current market price were $20: 
A)the market would be in equilibrium. 
B)there would be an excess supply of 25 units. 
C)there would be an excess demand of 25 units. 
D)there would be an excess demand of 35 units.

Quizplus · Accepted Answer

At a price of $20, buyers would want to purchase 35 units and sellers would want to sell 10 units, so quantity demanded would exceed quantity supplied by 25 units.

Refer to the Accompanying Figure