Final answer:
The demand and supply graph will have the demand curve intersect the supply curve at point C, representing equilibrium with the equilibrium price and quantity. A surplus is depicted as the gap between points D and E on the graph where quantity supplied exceeds quantity demanded.
Step-by-step explanation:
The student's question involves creating a demand and supply graph for submarine sandwiches with specific points that represent various economic concepts. To rightfully portray the given points, we would draw two intersecting curves on a graph, typically with the demand curve sloping downwards and the supply curve sloping upwards. Point A on the demand curve and point B on the supply curve represent the points where each curve intersects with the other, forming an X shape on the graph. At the intersection of these two curves, we designate point C, which represents the equilibrium point, meaning the market price and quantity where quantity demanded and quantity supplied are equal. This is the equilibrium price and equilibrium quantity.
Furthermore, surplus is shown as the area between points D and E on the graph, where the quantity supplied exceeds the quantity demanded, leading to a surplus of goods on the market. This typically happens above the equilibrium point where the price would be higher than the equilibrium price, resulting in a higher quantity supplied by producers but a lower quantity demanded by consumers.