In the following figure,there will be an excess demand at any price: A) below P^a. B) below P^b. C) other than P^b. D) above P^b. E) above P^c.

Question

Quizplus · Accepted Answer

This is because at price P^b, the quantity supplied exceeds the quantity demanded, leading to a surplus. Any price below this would have an excess demand, while any price above this would have a surplus. Therefore, the correct choice is B, below P^b.

In the Following Figure,there Will Be an Excess Demand at Any