Social Studies, 30.03.2021 01:00 Cyu437
A graph has Quantity on the x-axis and price in dollars on the y-axis. A line that represents supply has a positive slope and a line that represents demand has a negative slope. The lines intersect each other at a point which represents equilibrium. Point A on the supply line represents the new quantity supplied, and point B on the demand line represents the quantity demanded. Both are at the same price point which is below equilibrium. "A" represents the new quantity supplied, while "B" represents the new quantity demanded. What is the result of these changes? excess supply Based on this graph, what should happen to prices? They should fall.
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