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WAEC Economics 2020 Objective — Question 8

Question 8 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.

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In figure 4 above, YZ represents

Diagram for question 8
  • A. excess demand
  • B. excess supplyCorrect
  • C. equilibrium quantity
  • D. equilibrium price

Explanation

YZ represents the gap between quantity supplied and quantity demanded at a price above equilibrium, which is excess supply.

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