The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-In Figure 17.1, if the price set in the market is P₃ when the demand curve is D₁, then:

Question

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

The figure given below shows the demand curves [D<sub>1</sub> and D<sub>2</sub>] and the supply curve [S<sub>1</sub>] of capital.Figure 17.1 -In Figure 17.1, if the price set in the market is P<sub>3</sub> when the demand curve is D<sub>1</sub>, then: A) the market will be in equilibrium. B) there will be an excess demand for capital of the amount Q<sub>4</sub> - Q<sub>1</sub>. C) there will be a shortage of capital in the market by the amount Q<sub>4</sub> - Q<sub>2</sub>. D) there will be a surplus of capital in the market by the amount Q<sub>3</sub> - Q<sub>1</sub>. E) there will be a surplus of capital in the market by the amount Q<sub>3</sub> - Q<sub>2</sub>.

-In Figure 17.1, if the price set in the market is P₃ when the demand curve is D₁, then:

Quizplus · Accepted Answer

When the price set in the market does not match the equilibrium price, and is higher than the price at which quantity demanded equals quantity supplied, it results in a surplus of capital. This surplus is the difference between the quantity supplied at the set price and the quantity demanded at that price.

The Figure Given Below Shows the Demand Curves [D1 and D2]

The Figure Given Below Shows the Demand Curves [D₁ and D₂]