Refer to the above diagram.A surplus of 160 units would be encountered if price was:

Question

Quizplus · Accepted Answer

A surplus occurs when the quantity supplied is greater than the quantity demanded at a given price. In the above diagram, a surplus of 160 units would occur if price was $1.60, because at that price point, suppliers are willing to supply 360 units, but only 200 units would be demanded by consumers. At any price below $1.60, the quantity demanded would be greater than the quantity supplied, and at any price above $1.60, there would be a shortage instead of a surplus.

Refer to the Above Diagram