At a price of $65, consumers demand 650 pairs of shoes, and sellers supply 650 pairs of shoes. At $65, there is _____. A) excess demand (demand is greater than supply) B) excess supply (supply is greater than demand) C) no excess supply or demand
Social Studies · High School · Wed Jan 13 2021
Answered on
At a price of $65, consumers demand 650 pairs of shoes, and sellers supply 650 pairs of shoes. At $65, there is an excess supply of shoes. This can be confirmed since we cannot possibly have such a number of pairs by just having $65, thus as the law of supply and demand applies, the seller would willingly want to dispose that of their shoe stocks, in order to cope up with the demand.
Final answer:
B) excess supply