Chapter 2 The Basics of Supply and Demand 50 of 52 Copyright © 2009 Pearson Education, Inc.
{"Image DocumentName": "2.2THE MARKET MECHANISM. Figure 2.3. Supply and Demand. The market clears at price P0 and quantity Q0.", "Image ImageDescription": "At the higher price P1, a surplus develops, so price falls. At the lower price P2, there is a shortage, so price is bid up. \u25cf surplus Situation in which the quantity supplied exceeds the quantity demanded. \u25cf shortage Situation in which the quantity demanded exceeds the quantity supplied.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}