At a price of $50, consumers demand 1,000 pair of shoes, and sellers supply 500 pairs of shoes. At $50, there is _____.

Respuesta :

Excess Demand the demand is higher than the supply

Answer:

Since the price of shoes is lower than equilibrium price, at $50 there is a demand surplus because consumers would be willing to pay more for the shoes. That demand surplus will result in an excess demand, that is why consumers are willing to buy 1,000 pairs of shoes but since the price is too low, suppliers will only sell 500 pairs.