The result of the changes in the area of the new quantity demanded and supplied would be option d). Excess supply
Based on the graph, the price of the good would: a). They should fall.
The graph shows that the new quantity supplied (B) is greater than the new quantity demanded (A). This means that there is more of the good available than consumers are willing and able to buy at the current price. This is a situation of excess supply.
The graph shows that the new equilibrium price will be lower than the original equilibrium price.
So,When the new quantity supplied is greater than the new quantity demanded, there is excess supply and prices will tend to fall.
See text below
“A” represents the new quantity supplied, while “B” represents the new quantity demanded. What is the result of these changes?
equilibrium
supply shift
excess demand
excess supply
Based on this graph, what should happen to prices?
They should fall.
They should rise.
They should stay the same.
**PLEASE INCLUDE AN EXPLANATION!!