This graph shows the demand and supply of a particular brand of shampoo in the market. Which point on the graph indicates a surplus production of shampoo?

This graph shows the demand and supply of a particular brand of shampoo in the market Which point on the graph indicates a surplus production of shampoo class=

Respuesta :

Answer:

it is D

Explanation:

The point that represents a surplus on the graph is point D.

Description of surplus

A surplus is when the quantity supplied is greater than the quantity demanded. This is because price is above equilibrium. This would be an incentive to increase supply and this would make consumers to decrease demand. This leads to a surplus.

Due to the surplus, prices would fall until equilibrium point is reached again. Equilibrium is the point at which quantity demanded equals quantity supplied. On the graph, this is point C.

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