What is Supply?... Continued
b) Forces of Supply and Demand (Surplus)
When the supply curve and demand curve are overlapped on each other, they reveal either a disequilibrium or equilibrium. Fig. 7 on the left reveals a surplus disequilibrium. For example; At P = 17, A surplus of 12 results (or 45-57) With a surplus, suppliers undercut each other pushing prices down towards equilibrium.
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