The Diagram Below Represents the Market for Butter

question 95

Multiple Choice

The diagram below represents the market for butter.
FIGURE 4-1

-Refer to Figure 4-1. If the current price of butter equals $5, what is the result in the market?

• A) The market is not in equilibrium, and that the quantity supplied is greater than the quantity demanded.
• B) The market is not in equilibrium, and that the quantity demanded is greater than the quantity supplied.
• C) The market is in equilibrium at 8000 kilograms per year.
• D) The market is in equilibrium at 2000 kilograms per year.

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