Figure 3-2
-In Figure 3-2,a surplus exists in the gasoline market when the price is

Question

Figure 3-2 
-In Figure 3-2,a surplus exists in the gasoline market when the price is

Quizplus · Accepted Answer

A surplus in the gasoline market occurs when the quantity supplied exceeds the quantity demanded, which happens at a price above the equilibrium price. If Figure 3-2 (not visible here) shows that a surplus occurs at $0.60/litre, it means at this price, suppliers are willing to sell more gasoline than consumers are willing to buy, leading to a surplus.

Figure 3-2 -In Figure 3-2,a Surplus Exists in the Gasoline Market When