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Figure: Supply, Demand, and Equilibrium
-(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and Equilibrium. In the figure, there will be an excess supply of the good at a price of P₁.

Question

Use the following to answer questions:
Figure: Supply, Demand, and Equilibrium

-(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and Equilibrium. In the figure, there will be an excess supply of the good at a price of P₁.

Quizplus · Accepted Answer

The figure shows that at a price of P₁, the quantity supplied is equal to the quantity demanded, which means there is no excess supply or demand. Therefore, the statement is false.

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