QQuestionEconomics
QuestionEconomics
"How do you find shortage or surplus on a graph?
A. Shortage is above the equilibrium price.
B. Surplus is below the equilibrium quantity.
C. Shortage is below the demand curve.
D. Surplus is the area above the supply curve."
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Answer
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Step 1Let's solve this step by step:
Step 2: Understanding Equilibrium
- In economics, equilibrium is the point where supply and demand curves intersect - At equilibrium, the quantity supplied equals the quantity demanded - The equilibrium price is where the supply and demand curves cross
Final Answer
Surplus is the area above the supply curve.
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