7
QuizMultiple Choice
Determining Market Price
Question 7 • TX-Economics Chamberlain P4 T1
The graph shows excess demand.Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?
Answer
A
As prices fall, quantity demanded goes up.B
As prices fall, quantity demanded goes down.C
As prices fall, quantity demanded stays the same.D
As prices fall, quantity demanded disappears.