200
300
600
100
Explanation
No explanation available
Video Explanation
No video available
Post your Contribution
Discussions (6)
When at the current price level,(which is 60) the quantity demanded is more than quantity supplied, a situation of excess demand is said to arise in the market.
Excess demand occurs at a price less than the equilibrium price. in the diagram, the demand curve touches 300. and 300 is below thhe equilibrium quantity which is 200.(the straight line indicates that)
hence the excess of demand is 300.
A is the correct answer. Supply at N60 is 100 while Demand at N60 is 300
Excess demand = quantity demanded (Qd) - demand supplied (Qs)
Excess supplied = quantity supplied (Qs) - quantity demanded (Qd)
the answer therefore is 300 (Qd) - 100 (Qs) = 200
The selected answer is wrong:
yes it is because option b is the excess of demand
obviously the answer is 200 which is a since at price 60 the quantity supplied is 100 and the quantity demanded is 300 the excess demand is qd-qs = 300-100 = 200
