Consider the graph above. A decrease in quantity demanded is represented by 1) a movement from point B to E 2) a movement from point C to A 3) a shift from D1 to D2

Q: The law of demand is illustrated by a demand curve that is: A. Vertical B. Horizontal C. Upward…

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Q: Distinguish between demand and quantity demanded.

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Q: demand

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Q: demanded?

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Market Surplus and Shortage Analysis

In everyday language, a “surplus” indicates that there is an excess of something, while a “shortage” means that there is a scarcity of it. In economics, “market surplus” refers to the condition where the quantity of a certain good more available than what is required or “demanded” by the market. In the same way, a “market shortage” refers to the condition where the quantity of a certain good is less available than what is “demanded” by the market. If quantity in demand is written as Qd and quantity that is supplied is written as Qs, then, the condition Qs > Qd indicates market surplus and condition Qd > Qs indicates market shortage.