**Market for Laptop Chargers: Supply and Demand Analysis**In the graph depicting the market for laptop chargers, we analyze the relationship between price and quantity for both supply and demand.- **Vertical Axis (Price):** This axis ranges from $0 to $90.- **Horizontal Axis (Quantity):** This axis represents quantity, ranging from 0 to 80 units.**Demand Curve (Blue):** This line slopes downward from the left to the right, indicating that as the price decreases, the quantity demanded increases.**Supply Curve (Orange):** This line slopes upward from the left to the right, showing that as the price increases, the quantity supplied also increases.**Equilibrium Point:** The intersection of the demand and supply curves occurs at a price of $50 and a quantity of 40 units.**Scenario Analysis:**If the price were to be $65:- At this price, the supply curve indicates a quantity of 60 units.- The demand curve at this price indicates a quantity of 40 units.As a result, the market is experiencing an **excess supply** (surplus) of 20 units at the price of $65.**Multiple Choice Question:**If the price were to be $65, then this market is experiencing an ___ in the amount of:- O excess supply; 20 units- O excess supply; 30 units- O excess demand; 20 units- O excess demand; 30 units*Correct Answer: excess supply; 20 units*

The forces of supply and demand in the market determine the price and quantity at equilibrium. The…

Answered: If the price were to be $65, then this…

If the price were to be $65, then this market is experiencing an excess supply, 20 units excess supply; 30 units excess demand, 20 units excess demand; 30 units in the amount of

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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