Figure: Supply and Demand 1 At a market quantity of 5,the shaded region in the figure represents:

Name: Figure: Supply and Demand 1 At a market quantity of 5,the shaded region in the figure represents:
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Figure: Supply and Demand 1  At a market quantity of 5,the shaded region in the figure represents:

Quizplus · Accepted Answer

The shaded region in the figure represents unexploited gains from trade, which means there are potential buyers and sellers who are willing to trade at a price different from the current equilibrium price but cannot do so due to the quantity being restricted.

Figure: Supply and Demand 1 at a Market Quantity