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A graph plots quantity versus price origin at 0. Points plotted on Y axis are P sub 1, P sub 2, and P sub 3.
A graph plots quantity versus price origin at 0. Points plotted on Y axis are P sub 1, P sub 2, and P sub 3. Points plotted on X axis are Q sub 1, Q sub 2, Q sub 3, Q sub 4, Q sub 5. Two lines S and D intersect each other at point (Q sub 3, P sub 2). Figure 3.4.1 At price P3 in Figure 3.4.1 there is a shortage in the amount of Q5 - Q1. there is a surplus in the amount of Q5 - Q1. this market is in equilibrium. equilibrium quantity is Q5. there is a tendency for the price to rise
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