Before we move on to the next section, try to solve the following questions, which cover central concepts in microeconomics you should understand.
Figure 3.4 Demand and Supply for Gasoline The demand curve (D) and the supply curve (S) intersect at the equilibrium point E, with a price of $1.40 and a quantity of 600. The equilibrium price is the only price where the quantity demanded is equal to the quantity supplied. At a price above equilibrium, like $1.80, the quantity supplied exceeds the quantity demanded, so there is excess supply. At a price below equilibrium, such as $1.20, the quantity demanded exceeds the quantity supplied, so there is excess demand.
Source: OpenStax, https://openstax.org/books/principles-microeconomics-3e/pages/3-self-check-questions
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