Use the following to answer questions 24-26:
Figure 2.4
-(Figure 2.4) An excess supply of 3,000 pounds occurs at a price of:
A) $2.
B) $5.
C) $6.
D) $8.

Question

Use the following to answer questions 24-26:
Figure 2.4 
-(Figure 2.4) An excess supply of 3,000 pounds occurs at a price of:
A) $2. 
B) $5. 
C) $6. 
D) $8.

Quizplus · Accepted Answer

At a price of $2, there is excess demand of 5,000 pounds. At a price of $5, there is excess demand of 1,000 pounds. At a price of $8, there is excess supply of 2,000 pounds. Only at a price of $6 is the quantity supplied equal to the quantity demanded (i.e. there is no excess supply or demand). Therefore, the best choice is C) $6.

Use the Following to Answer Questions 24-26