3.3 Market Equilibrium: Bringing Demand and Supply Together
Figure 3.2
-Figure 3.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $15, there is an

Question

3.3 Market Equilibrium: Bringing Demand and Supply Together
  Figure 3.2
-Figure 3.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $15, there is an

Quizplus · Accepted Answer

At $15, the quantity demanded is 42 t-shirts and the quantity supplied is 34 t-shirts. This means there is an excess supply of 8 t-shirts (42-34=8). To reach market equilibrium, the price would need to decrease to a point where the quantity demanded and quantity supplied are equal.