6
QuizMultiple Choice
Determining Market Price
Question 6 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27
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.A
As prices fall, quantity demanded goes down.A
As prices fall, quantity demanded stays the same.A
As prices fall, quantity demanded disappears.