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Suppose in the market for banana. When the price is $5 , the quantity demanded for banana is 6 , and the quantity supplied is 20 . What's the amount of surplus in the market?

User KumarAnkit
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To find the amount of surplus in the market, we need to compare the quantity demanded and the quantity supplied at a given price.

Given:

- Price: $5

- Quantity demanded: 6

- Quantity supplied: 20

Since the quantity supplied (20) is greater than the quantity demanded (6) at the given price ($5), we have an excess supply or surplus in the market.

To calculate the amount of surplus, we subtract the quantity demanded from the quantity supplied:

Surplus = Quantity supplied - Quantity demanded

Surplus = 20 - 6

Surplus = 14

Therefore, the amount of surplus in the market is 14 units. This means that at the given price of $5, there are 14 extra bananas available in the market that are not being demanded by consumers.

User ZhouX
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