Question

At a price of $15, consumers demand 100 shirts and producers supply 50 shirts. So at this price, there is a(n) _____ .

A.) excess demand
B.) excess supply
C.) surplus

Answer 1

The answer choice that would solve this would be A).

Answer 2

A.) excess demand

Step-by-step explanation:

In a market economy, the interaction between supply and demand determines the selling price of products and services. When supply equals demand, we say that the economy is in equilibrium and the price charged is called the equilibrium price. On the contrary, when demand is greater than supply, as in this case where at the price of 15 consumers want to buy 100 units, but sellers are only willing to sell 50 units, there is an excess of demand. Likewise, when supply is greater than demand, an oversupply occurs.