f40 >
Suppose the accompanying graph depicts a market for one pound bags of candy. Place the point labeled Excess Supply to show a
price that would generate an excess supply (surplus). Then, determine the size of the excess supply.
Market for Candy
Excess Supply =
million bags
10
9
8
7
Excess Supply
5
Price per bag
5
4
3
2
D
1
0
2
9
10
4 5
Quantity (millions of bags)
