Question

If for a certain market, the quantity demanded is 200 units and the quantity supplied is 250 units, then there is _____.

equilibrium in this market

excess demand in this market

a price ceiling in this market

excess supply in this market

Answer 1

The correct answer is excess supply in this market. The market supplies more quantities of units than the market demands. In order to have an equilibrium market the quantity demanded is 200 units and the quantity supplied should be 200 units.