Question

Demand and supply curves of chocolate intersect at price of Rs30. Price of a chocolate is Rs 35
inside the premises of a school. This will lead to
a. Shortage of chocolate in the school premises
b. Surplus of chocolate in the school premises
c. Shift in the supply curve
d. Shift in demand curve​

Answer 1

Answer:

Surplus of chocolate in the school premises

Answer 2

Answer:

Concept:

On a graph, a demand curve depicts the relationship between the quantity required and the price in a specific market. According to the law of demand, lower quantities are normally required when prices are greater.

Explanation:

The demand and supply curves of chocolate intersect at  a price of Rs30. The price of chocolate is Rs 35 inside the premises of a school. This will lead to a Surplus of chocolate in the school premises

A supply schedule is a table that displays the volume supplied at various market rates. On a graph, a supply curve depicts the correlation between the amount delivered and the price. According to the law of supply, a higher price often results in a higher supply of goods.

Where the supply and demand curves intersect is where the equilibrium price and quantity are found. When the quantity given and demanded are equal, an equilibrium is reached. The amount demanded will exceed the quantity provided if the price is below the equilibrium level.

A shortage or an excess of demand will be present. The amount supplied will be greater than the quantity required if the price is higher than the equilibrium level. There will be an excess of supply or a surplus. Economic factors will drive the price toward the equilibrium level in either scenario.

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