Figure 3-G
The diagram below represents the market for butter.
-Refer to Figure 3-G.If the current price of butter equals $2, you would expect to find:

Question

Figure 3-G
The diagram below represents the market for butter. 
-Refer to Figure 3-G.If the current price of butter equals $2, you would expect to find:

Quizplus · Accepted Answer

At a price of $2, the quantity demanded is 8,000 pounds per year, while the quantity supplied is only 4,000 pounds per year. This means that there is excess demand, or a shortage, of 4,000 pounds in the market. Therefore, the market is not in equilibrium, and the quantity demanded is greater than the quantity supplied.

Figure 3-G The Diagram Below Represents the Market for Butter