Question

Question 9 Not yet answered Marked out of 1.00 P Flag question Figure 3-4 represents the market for butter. If the current price of butter equals $2 per pound, then: Figure 3-4 s Price of butter (per pound) 3 0 2 4 6 8 10 12 14 Quantity Demanded and (thousands of pounds/year) Select one: a. the market is not in equilibrium and the quantity supplied is greater than the quantity demanded. b. the market is in equilibrium at 3,000 pounds per year. C. the market is in equilibrium at 6,000 pounds of butter per year. d. the market is in equilibrium at 8,000 pounds per year. e. the market is not in equilibrium and the quantity demanded is greater than the quantity supplied.

Answer 1

e --- is correct

Equilibrium reaches at the intersection of demand and supply curves. At P= 2, quantity demanded exceeds quantity supplied.