Question

The demand curve above the equilibrium point represents ______ demands. The demand curve below the equilibrium point represents ______ demands.

Select one:

a. unsatisfied; unsatisfied

b. unsatisfied; satisfied

c. satisfied; unsatisfied

d. satisfied; satisfied

Answer 1

At the equilibrium point, the demand and the supply of the gods are equal. Above the equilibrium point the demand for the goods less than the supply. Below the equilibrium point, the demand for the goods is more than the supply of the goods.

So, above the equilibrium point, we have less demand and more supply which means a satisfied demand. Below the equilibrium, we have more demand and less supply that means unsatisfied demand.

The correct answer to this question is "C".