-Refer to Figure 2.3.At a price of $13 per CD,there would be
A) Excess supply of 30 thousand CDs
B) Excess demand of 10 thousand CDs
C) Excess supply of 60 thousand CDs
D) Excess demand of 20 thousand CDs

Question

-Refer to Figure 2.3.At a price of $13 per CD,there would be
A) Excess supply of 30 thousand CDs 
B) Excess demand of 10 thousand CDs 
C) Excess supply of 60 thousand CDs 
D) Excess demand of 20 thousand CDs

Quizplus · Accepted Answer

At a price of $13 per CD, the quantity supplied would exceed the quantity demanded, leading to an excess supply. The specific numbers (30 thousand CDs) would be determined by the supply and demand curves in Figure 2.3, which are not provided here, but the concept of excess supply at a price above the equilibrium price is a fundamental principle of economics.