Refer to Figure 3.14. At a quantity demanded of 750, there is an excess of what?
Understand the Problem
The question refers to Figure 3.14, to determine the excess at the quantity demanded of 750.
Answer
Excess supply of 450 sunglasses.
At a quantity demanded of 750, there is an excess supply of 450 sunglasses.
Answer for screen readers
At a quantity demanded of 750, there is an excess supply of 450 sunglasses.
More Information
Excess supply occurs when the quantity supplied is greater than the quantity demanded. In this case, the supply curve at quantity 750 corresponds to a price of $30. The demand curve at quantity 750 corresponds to also a price of $30. However, the supply curve continues to the left until a quantity of 300.
Tips
Be careful to read the graph correctly, and understand supply and demand curves.
Sources
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