question 8 of 13 > suppose the accompanying graph depicts a market for one - pound bags of candy. place the…

question 8 of 13 > suppose the accompanying graph depicts a market for one - pound bags of candy. place the line labeled excess demand at a price that would generate an excess demand, or shortage. then, determine the size of the excess demand. excess demand = million bags market for candy

question 8 of 13 > suppose the accompanying graph depicts a market for one - pound bags of candy. place the line labeled excess demand at a price that would generate an excess demand, or shortage. then, determine the size of the excess demand. excess demand = million bags market for candy

Answer

Explanation:

Step1: Identify equilibrium price

Equilibrium at intersection of S and D.

Step2: Find excess demand price

Price below equilibrium (e.g., $5).

Step3: Read Qd and Qs at $5

Qd=7 million, Qs=3 million.

Step4: Calculate excess demand

Excess demand=Qd - Qs=7-3=4.

Answer:

4