Question

the law of supply and demand
ssignment active
disequilibrium
excess supply
\a\ represents the new quantity demanded, while \b\
represents the new quantity supplied
what is the result of these changes?
, what will prices most likely do?
equilibrium
excess supply
excess demand

Explanation:

To determine the result of the changes where "A" is the new quantity demanded and "B" is the new quantity supplied, we analyze the supply - demand graph. At price \( P_2 \), the quantity supplied (represented by "B") is greater than the quantity demanded (represented by "A"). In the context of supply and demand theory, when the quantity supplied exceeds the quantity demanded at a given price, this situation is defined as excess supply. Equilibrium occurs when quantity demanded equals quantity supplied, and excess demand is when quantity demanded exceeds quantity supplied, so neither of those fit here.

For the price change question (though part of it is cut off, based on the excess supply situation), when there is excess supply (surplus of goods), producers will typically lower prices to try to sell the excess inventory and move back toward equilibrium. But for the first part about the result of the changes (A and B), the key is the relationship between quantity supplied (B) and quantity demanded (A) at price \( P_2 \).

Answer:

The result of these changes (A as new quantity demanded, B as new quantity supplied) is excess supply.
For the price question (assuming the context of excess supply), prices will most likely decrease (to move towards equilibrium by reducing the surplus).

(For the multiple - choice part visible in the image, the option for the result of the changes is "excess supply")