The market for Good $X$ is shown here.

Which of the following represents the surplus that would result in this market at a price of $P_{3}$ ?

Choose 1 answer:
(A) $Q_{C}-Q_{A}$
(B) $Q_{A}-Q_{B}$
(c) $Q_{B}-Q_{C}$
(D) $P_{3}-P_{5}$
(द) $X-Q_{C}$
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Question

The market for Good $X$ is shown here.

Which of the following represents the surplus that would result in this market at a price of $P_{3}$ ?

Choose 1 answer:
(A) $Q_{C}-Q_{A}$
(B) $Q_{A}-Q_{B}$
(c) $Q_{B}-Q_{C}$
(D) $P_{3}-P_{5}$
(द) $X-Q_{C}$
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Accepted Answer

∻Solution∻ ‖ a ⋮ Surplus Definition: Surplus in a market occurs when the quantity supplied ($Q_s$) exceeds the quantity demanded ($Q_d$) at a given price level. ‖ ‖ b ⋮ Identifying Quantities: At price $P_3$, the quantity supplied is $Q_C$ and the quantity demanded is $Q_A$. ‖ ‖ c ⋮ Calculating Surplus: The surplus at price $P_3$ is the difference between the quantity supplied and the quantity demanded, which is $Q_C - Q_A$. ‖ ∻Answer∻ ⚹ (A) $Q_{C}-Q_{A}$ ⚹ ∻Key Concept∻ ⚹ Market Surplus ⚹ ∻Explanation∻ ⚹ The surplus in the market at a price of $P_3$ is calculated by subtracting the quantity demanded ($Q_A$) from the quantity supplied ($Q_C$). ⚹◊From a Microeconomics perspective, how does a surplus in the market affect the equilibrium price and quantity?⍭ Generate me a similar question◊

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