Question 28
Price DeterminationIn the diagram above, what is the excess demand at the price of ₦60?
- A.200
- B.300
- C.600
- D.100
Show the answer and explanation
Answer: A (200)
Explanation
Use the diagram. At ₦60 the supply curve gives 100 units and the demand curve 300 units, so excess demand = 300 − 100 = 200.