-The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?
A) 0; there is excess supply at $7.
B) 20 units
C) 30 units
D) 10 units

Question

-The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?
A) 0; there is excess supply at $7. 
B) 20 units 
C) 30 units 
D) 10 units

Quizplus · Accepted Answer

Excess demand occurs when the quantity demanded exceeds the quantity supplied at a given price. At $7, if the graph shows that the quantity demanded is 30 units more than the quantity supplied, then the excess demand is 30 units.

-The Above Figure Shows a Graph of a Market for Pizzas