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Figure: Supply,Demand,and Equilibrium
-(Figure: Supply,Demand,and Equilibrium)Use 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)Use 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

At a price of P1, which is below the equilibrium price, there will be excess demand (shortage) rather than excess supply.

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