Use the following to answer questions 24-26:
Figure 2.4
-(Figure 2.4) At a price of $2, there is an excess:
A) supply of 4,000 pounds.
B) supply of 3,000 pounds.
C) demand of 3,000 pounds.
D) demand of 1,000 pounds.

Question

Use the following to answer questions 24-26:
Figure 2.4 
-(Figure 2.4) At a price of $2, there is an excess:
A) supply of 4,000 pounds. 
B) supply of 3,000 pounds. 
C) demand of 3,000 pounds. 
D) demand of 1,000 pounds.

Quizplus · Accepted Answer

At a price of $2, the quantity demanded is 7,000 pounds while the quantity supplied is only 4,000 pounds, resulting in a shortage or excess demand of 3,000 pounds.

Use the Following to Answer Questions 24-26