​ Exhibit 3-13 Supply and Demand Curves

question 72

Multiple Choice

​ Exhibit 3-13 Supply and demand curves
-​Which of the graphs in Exhibit 3-13 illustrates a surplus exists at the indicated market price?

• A) ​Diagram A.
• B) ​Diagram B.
• C) ​Diagram C.
• D) ​Diagrams A and C.

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Definitions:

Income

This is the financial gain (money) earned by an individual or entity, usually over a period of time, through work, investments, or business ventures.

Demand

The total amount of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Complementary Goods

Products or services that are used together, where the use of one increases the value of the other.

Substitute Products

Goods or services that can be used in place of each other; when the price of one increases, demand for the substitute is likely to increase.